So what is a bond? It’s a debt instrument issued by an investor to a governmental or corporate entity to finance its activities and projects. Bonds savings are commonly referred to as fixed income earning securities. A bond is similar to an IOU given by a borrower (the issuer) to a lender (the investor). So with that 0% rate reached in 2009, you won’t earn anything, but you won’t lose any of your principal! Fixed rate bonds savings pay investors a set rate of interest. The amount offered to investors will normally depend upon the term. Is there an alternative? Yes!
The price paid for a bond is based on a variety of variables including interest rates, supply and demand, credit quality, maturity, and tax status. Newly issued bonds savings buy and largely sell at or close to their face value. The price of bonds also fluctuates in the secondary market in response to changing interest rates. When a bond sells above its face value, it is said to be selling at a premium. When it does the reverse, it is said to be selling at a discount.
The diversity of these “fixed income earning” securities gives prospective investors an opportunity to customize investments in accordance with their financial objectives. But bonds savings are not the only product that offers this. Bonds can ensure investment stability in times of volatile markets….but another asset class has arisen that is worthy of consideration… Are you looking for steady and predictable payments and sometimes even tax-free income? Are you looking for something that you can invest in at every stage of your life? Your investment strategy will change over time – what can best roll with those changes?
While bonds are very safe investments, compare this dismal situation we find ourselves in with bonds to that alternative below…a guaranteed 4% dividend found in a mutually-owned, dividend-paying whole life insurance contract. Is that a REAL alternative? Is it on the level? Once you take a look, you’ll be saying – “bonds savings? what was I thinking!”
Discover the full Power of dividend-paying whole life insurance and what it can do for your investment strategy Alternative To Bonds Savings.
Nine years ago, Bonita launched her career with financial advising and has been fulfilling her mission to educate and inspire people to find freedom in all areas of their lives. Bonita recently achieved the Chartered Life Underwriter (CLU) professional designation in November 2009. Bonita can help you pursue a secure financial future by the relationship she establishes with you, enabling her to focus on your needs-what you desire for your family right now and in the future. Find out more about what she can offer you at Bonds Savings Alternative.
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