Savings bonds rates – And they are right for my pension?

To determine whether the bonds could be liable to retirement planning, you must first understand some basic things about it.

Most people know little or nothing about bonds. In fact, as Robert Kiyosaki mentioned several times in his book Rich Dad, most people do not know the difference between stocks and bonds. Are very different.

or at least one shareholder – If shares held by technically a part of this society are to buy. Are you the owner of the equity of the company. It why stocks are also savings bonds rates known in shares.

If you buy a bond, you pay money to the company or the government that issued the bond. Instead of lending to savings bonds rates, a bank and finance, business and government bonds. Thus, bonds, debt instruments. They are like notes.

If a company is a team of high-risk than (often due to poor credit or overloaded with too many loans), their bonds are often savings bonds rates, referred to as “junk” bonds.

The U.S. government has issued bonds and treasury bills probably more (this is just another form of bonds) than any other! Therefore, you hear that the U.S. owes to China. U.S. savings bonds rates does not really go to China and borrow money, but China has invested in U.S. bonds and T-Bills. So in fact you lend money savings bonds rates to the U.S. when she bonds (which now also at any time to “savings” bonds – or other obligations of the United States) to buy.

Since a bond is a type of loan is not Interest on the loan. Your interest payment is called a “voucher”. You may have heard of “zero savings bonds rates coupon” bonds? Zero coupon bonds pay no interest as you go, but you pay at the end of the term of the savings bonds rates loan. Investors buy zero coupon bonds at deep discounts to the value of the face amount of a bond is its worth when it “matures” or outdated.

If the term of zero-coupon bonds, the investor receives a fixed amount of initial investment Interest. In other words, the bond is purchased at a discount to face value (similar to savings bonds rates bonds.)

State and local governments, bonds. You may have heard of a bond to build a school or government building near you. Those who borrow money effectively bonds to purchase the project.

Therefore, the bonds are retired portfolio? My answer is yes. At least a small portion of their savings should be in bonds. The closer you Retirement age, the type of bonds with low risk and that you want (spam) in your portfolio. You can also more savings bonds rates as you approach.

You can also look at some pension fund or, better yet, some bond ETFs. Let the experts handle the actual link enjoy your chosen, then with a balanced portfolio of retirement!

Doug West has worked in education of financial planning and investment security for over 20 years. Get your free audio report on how to get your retirement Free Online Tools:

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By: Doug West
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