By Aspen Greaves

Bonds

What are Bonds? According to the Wall Street Journal, bonds are IOU’s.

They are considered the safer option.

15% of retirement fund

Not entirely risk free

How to Buy Bonds Investopedia suggests a brokerage.

Broker requires a 5,000 minimum deposit on average.

Mutual or Bond funds

Government Accounts

Treasury- http://www.treasurydirect.gov

Benefits of Bonds Bonds are usually a safer option.

They are known as risk free

Never lose your principle

Risks/Cons of Bonds You just don’t make money

Junk Bonds

Types of Bonds Government Bonds

Treasury Bonds

Junk Bonds

Municipal Bonds

Corporate Bonds

Returns/Return Potential Typically lower than stocks.

Lower risk, lower return

Costs Brokers- $5,000

Quiz .

Question 1 .

What does the Wall Street Journal classify bonds as?

a) IOU’s

b) Debts

c) Promises

d) Returns

Question 2 .

What government department allows you to buy stocks directly from them?

a) Department of Agriculture

b) Supreme Court

c) Treasury

d) Department of Education

Question 3 .

True or False: Bonds are riskier than stocks?

a) True

b) False

Question 4 .

What organization can charge a minimum fee of $5000?

a) Mutual Funds

b) Brokers

c) Treasury

d) Brokerage

Question 5 .

What bonds generally have the best return potential?

a) Government Bonds

b) Corporate Bonds

c) Municipal Bonds

d) Junk Bonds

The End .