Started By
Message

re: Bonds. Explanation needed.

Posted on 5/5/15 at 9:00 am to
Posted by bayoubengals88
LA
Member since Sep 2007
19014 posts
Posted on 5/5/15 at 9:00 am to
quote:

As I've mentioned before when you were really caught up on blue chips, most would suggest at your age that you should be looking at equity funds. Forget about the income for now and look for some serious growth.
Yes, 26.
You're right. I'm now pro index funds or high yield ETFs having gotten out of all my blue chips.
I am just curious about opening up a small bond position at some point.
Posted by SouthOfSouth
Baton Rouge
Member since Jun 2008
43463 posts
Posted on 5/5/15 at 9:05 am to
quote:

You're right. I'm now pro index funds or high yield ETFs having gotten out of all my blue chips.
I am just curious about opening up a small bond position at some point.


Just remember the price of the bond is only relevant if you plan on trading it. If you expect your children to go to college in 20 years and get a 20 year bond, you will get the entire amount in 20 years. If interest rates increase, they will sell for less if you need to get your money out in 10 years, but you will be given the actual amount you expected if you hold till maturity. It's just relatively less desirable if interest rates in the market are higher.

ex: why would I buy a bond with a 4% interest rate when the going rate is 6%?

This post was edited on 5/5/15 at 9:06 am
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram