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 .
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