Search results “Individual bonds or bond funds”
Individual bonds vs. bond funds
Which is a better investment? There are pros and cons to each, but Vanguard bond experts Daniel Wallick and Chris Alwine emphasize that a municipal bond fund provides diversification and can cushion against risk. All investing is subject to risk, including the possible loss of the money you invest. Credit-quality ratings are obtained from Standard & Poor's and are measured on a scale that generally ranges from AAA (highest) to D (lowest). *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 13797 Vanguard
Bond Basics 5: Bonds? Or A Bond Fund?
Should you own individual bonds or a bond fund? Learn why the answer is easy in this episode. Visit http://www.FinancingLife.org for the transcript and learn what every investor should know about bonds and fixed-income securities. Don't forget to LIKE, COMMENT, and SUBSCRIBE for more videos like this! http://www.youtube.com/subscription_center?add_user=FinancingLife101 SUBSCRIBE TO OUR EMAIL LIST! http://financinglife.org/subscribing/ ABOUT US: We're a not-for-profit educational site to help YOU find and understand time-proven investing wisdom and to build an all-weather portfolio. This common sense investing philosophy is also known as the Bogleheads Investment Philosophy, endearingly named in honor of John C. Bogle, the champion of common sense investing.
Views: 20553 FinancingLife101
Bond investing in challenging times: Bond funds vs. individual bonds
In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss bond funds and individual bond portfolios. Notes: • All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. • Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. • Diversification does not protect against a loss in a declining market or ensure a profit. • Past performance is not a guarantee of future results. • The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. •Vanguard Marketing Corporation, Distributor.
Views: 6666 Vanguard
Bond Index Funds in Rising-Rate Environments | Common Sense Investing with Ben Felix
If active management isn’t the answer, and interest rates really do have nowhere to go but up, should you still expect positive returns from your bonds? I’m Ben Felix, Associate Portfolio Manager at PWL Capital. In this episode of Common Sense Investing, I’m going to talk about bond index funds in rising-rate environments and advice you on why you don’t need to be afraid of bond index funds. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover! ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix -LinkedIn: https://www.linkedin.com/in/benjaminwfelix/
Views: 19378 Ben Felix
Should you buy individual bonds or bond funds?
#moneyeducation #financialeducation #bonds Financial education and informative topics about money. Please let me know what topic you would like me to discuss. website: https://www.elcadvisors.com Instagram: https://www.instagram.com/eriklcooper/ LinkedIn: https://www.linkedin.com/in/erikcooper/ WARRANTIES & DISCLAIMERS There are no warranties implied. ELC Advisors, LLC (“ELC Advisors”) is a registered investment adviser operating in TX and AZ. ELC Advisors may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. ELC Advisors’ web site and newsletter is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of ELC Advisors’ web site on the Internet and newsletter via email should not be construed by any consumer and/or prospective client as ELC Advisors solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by ELC Advisors with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of ELC Advisors, please contact the state securities regulators for those states in which ELC Advisors maintains a registration filing. A copy of ELC Advisors current written disclosure statement discussing ELC Advisors business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from ELC Advisors upon written request. ELC Advisors does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to ELC Advisors’ web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Views: 5 Erik Cooper
If you own Bonds or Bond Funds You might Want to Watch This!
Why record low interest rates might be warning sign for those who own bond investments
Views: 268 Prudent Money
Investing in Individual Bonds and Bond Mutual Funds
Follow Dan’s guide to stock buys & sells: https://www.bit.ly.com/fismpartner Listen to Dan Live every day at https://www.financialissues.org Like Dan on Facebook: https://www.facebook.com/financialissues Follow Dan on Twitter: https://twitter.com/financialissues What does Dan think about Bitcoin?: http://bit.ly/fismbitcoin Financial Issues - Program April 23, 2018 *Information given by Dan could be based on time-sensitive market data or economic situations that are subject to change.
What's the Difference Between Bonds and Bond Funds?
How do individual bonds differ from bond mutual funds, and why would you invest in one over the other? Financial Educator Scott Huband, CFP® from Pure Financial Advisors outlines the main differences between the two. Transcript: Today's question is what's the difference between a bond and a bond fund? So once you've decided you want to include bonds inside of your portfolio, you have essentially two main options. You can invest in individual bonds or you can invest in bond mutual funds. Starting with individual bonds, the key distinction here is that bonds pay a fixed rate of interest so you can know ahead of time exactly what your rate of return will be, assuming of course you hold the bond until maturity and that the issuer doesn't default. Now, it's harder to get diversification using individual bonds, depending on the amount of dollars that you have, so a lot of investors choose to invest in bonds through bond mutual funds. The concept here is similar to a stock mutual fund where you're pooling your money with other individual investors. Only in this case, instead of buying and selling stocks, a portfolio manager is buying and selling individual bonds inside of the fund. The downside to this approach is that you have less control over the process and often the bonds aren't held to maturity, and so you can't know ahead of time exactly what your rate of return will be. But it still is a good way to invest in bonds in a diversified way. In addition, bond mutual funds for the individual investor are often far less expensive than buying individual bonds. Those are the main differences between bonds and bond mutual funds. For more information visit PureFinancial.com. If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” http://bit.ly/2FDSfK2 Channels & show times: http://yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Bonds or Bond Funds?
A staple in balanced portfolios, bonds are available as individual investments or through collective funds. Art Rothschild notes some advantages to bond funds. Arthur S. Rothschild is vice president at Landaas & Company, Milwaukee. http://www.landaas.com/about/talent/arthur-rothschild Money Talk video by Peter May http://www.landaas.com/about/talent/support-staff/peter-may More information and insight from Money Talk http://www.landaas.com/money-talk Money Talk Videos http://www.landaas.com/money-talk/money-talk-videos Landaas & Company Money Talk newsletter http://www.landaas.com/about/newsletter Follow Landaas & Company on Twitter http://www.Twitter.com/@_Money_Talk
Views: 239 Money Talk
Bonds vs Bond Funds for Income and Portfolio Diversification - Lesson 5
http://www.learnbonds.com/bond-funds-vs-individual-bonds/ - In this lesson we cover the ins and outs of individual bonds vs bond funds for income and portfolio diversification.
Views: 745 Learn Bonds
Municipal Bonds or Muni Bond Funds: Investing 101 w/ Doug Flynn, CFP
Doug Flynn, CFP, of Flynn Zito Capital Management, LLC on the many ways to Invest Municipal Bonds Ali: ...He started by telling us exactly what a municipal bond is. Doug: You're basically lending money to a municipality, to a government, a state, a city, to do particular projects, and for that they're going to pay you interest, and that interest is typically tax-free. Ali: Generally speaking though, if I buy an individual bond, I know what my return is going to be. There might be some chance I don't get paid, they're all rated, but if I get paid, I'm going to get a return, a percentage return. Doug: That's right, as a standard return, you might get interest every six months, which doesn't automatically reinvest, there's no way to do that: you're going to take that check and do something else with it. But absolutely, you know what you're going to get, and when you're going to get it. The problem now is if you buy a thirty year bond at a low point, and rates are higher in five years, you're going to be very angry that you locked in at a lower point when there will be higher bond rates coming in a few years. Ali: So that is the advantage of buying it in a fund, because a fund manager trades in and out of these things. Doug: That's right, and people dont realize that there is a benefit to trading, because when they do something called bond swaps, where there might be a way to do different things by buying one bond and selling another one that boosts the yield. But absolutely, you get bonds that get called on you, and the fund also has the benefit of a monthly dividend that can reinvest, so a lot of people like that. It's also a much better, easier, cheaper way to get involved. When you buy an individual municipal bond, people don't realize, unless you have $1,000,000, you're not an institutional investor, you're paying a price that can be 2 or 3 or 4% more, where a fund is going to pool that asset, or if you have that $1,000,000, you can get preferential pricing, but it's what the funds are going to hopefully bring to you. But you don't get a fixed return, and your fixed principal back to you. Ali: So doesn't that defeat the purpose? Because I buy a bond knowing what I'm getting over time. Doug: There are times you may want to buy an individual bond no matter what type of bond it is. I would say at a time when rates are extremely high, and possibly going down. That's when you want to lock in for as long as you can. But when rates are constantly going up, for the next couple of decades perhaps, and I don't know when, these are ways you can kind of roll into that, and not commit a whole bunch of money at a particular low point. Ali: Right, and these have all kinds of flavors. So you talked about buying a certain type of individual bond, that's not for everybody, you talked about mutual funds. There are even exchange traded funds for bonds. Now I know how ETFs typically work, it's a basket of stocks that you buy, it's got a ticker, you buy it like a stock. How do they work when it comes to municipal bonds? Doug: It's exactly the same way. Now an ETF is a mutual fund, it just happens to be one that also trades on the stock market. So you can find municipal bond funds that trade on the exchange throughout the day. You get into the movement of the market on a daily basis throughout the day, as opposed to only at the end of the day with a traditional mutual fund. But you can buy them in ETF format. Therefore they might be a little bit cheaper... Ali: Cheaper because there's a lower fee because you don't have to pay a manager... Doug: Correct, but you might not be able to reinvest the dividend off of that, so that's a little bit different. Ali: It worries me though, because you need a certain sophistication to understand getting in and out of bonds. Now do I give that up by going for an ETF versus one where I am paying for a manager who's a specialist one hopes. Doug: There is value in trading bonds if the manager you're choosing knows what they're doing, so if you take an individual municipal bond, you have one bond, you're subject to it, you buy an ETF that's a fixed basket that isn't necessarily actively traded, but maybe it's fifty bonds instead of one, but there is an active trading, but then you have a more common traditional fund, where the manager hopefully is trading and bringing something of value to the equation for you. So those are different risks depending on how you would like to do it. Ali: Now let me ask you one more thing. A unit investment trust, what is that? Doug: It's similar to an ETF, it's a basket of securities that many different firms put out there, but they have a maturity date. But all these things should be available to you, and you should research, or an adviser can help you out based on what your needs are, and that will be the best way to buy some municipal bonds if you need some additional, tax-free income.
Views: 7593 FlynnZito
Is It a Bad Idea to Buy Bonds When Interest Rates Are Going Up?
http://IncredibleRetirement.com 800-393-1017 Here’s something I bet you didn't know. The U.S. stock market, the size of the U.S. stock market is about $30 trillion. If you added up the value of all publicly traded stocks in the U.S., the market value of all those companies would come up to around $30 trillion, but what about bonds? Bonds are hardly ever mentioned or talked about in the financial media, but I bet you might be surprised to discover that the U.S. bond market is actually much bigger than the stock market. The U.S. bond market is estimated to be $40 trillion or more. That's right, the bond market is actually larger than the stock market and yet the financial media has almost all their attention and therefore our attention on the stock market. So what about bonds? Should you be buying bonds when interest rates are going up? You may have heard that when interest rates go up, bond values go down, which is true. Think of a seesaw or a teeter totter, the end that goes up is interest rates and the end that goes down is the underlying value of the bond. Bonds by the way are nothing more than a loan to a company or government or government agency. Typically bonds pay their interest twice a year, every six months, and when the loan comes due, they have a maturity date which could range anywhere from 90 days to 30 years, when you get your money back. If you look at long term returns of investments, let's say 15 year timeframe or longer, then it's no secret stocks have outperformed bonds by a large, large margin; so if stocks do better than bonds over the long term why not just have all of your money in stocks? Well the problem is while stocks tend to deliver nice, long term returns, but the short term oh, that could be a whole other story. Stocks on the short term can be extremely volatile. Just look what happened in the financial crisis of 2008. The S&P 500, the 500 largest publically traded companies in America, lost about 38% in value. So $100,000 in the S&P 500 at the end of 2008 was now worth $62,000. Ouch! That's a lot of short term volatility which tends to make you and I uncomfortable, to say the least. So how do we dampen or minimize that volatility? Imagine you have a sailboat and you have entered it into a race. One way to make your sailboat go faster is to make it lighter. But the lighter the sailboat, the more likely it is to capsize with a gust of wind. To prevent that you add weight or ballast to the sailboat. That slows the speed of the boat down but it reduces the odds of the boat capsizing and sinking. This is how you should think of bonds in your overall investment strategy. They are going to slow down the overall growth of your investment accounts but they are there to keep you from capsizing, to keep you from sinking during short-term periods of market volatility. So the answer to the question should you buy bonds, even when interest rates are going up, as a long term investor, the answer is a qualified yes, and here's what I mean by that. If you buy individual bonds and hold the bond until it matures or is called away early by the issuer then you'll receive the interest and get all your money back when the bond matures. The value of the bond can and will fluctuate while you own it, but it doesn't affect you if you hold it to maturity because then you get all your money back. This is why it's important to own individual bonds, especially in a rising interest rate environment, you don't lose money if you hold the bond until maturity. Why not just use a bond mutual fund? The problem with a bond mutual fund is it doesn't have a maturity date. People are constantly adding or withholding money from the mutual fund itself and typically at the wrong time. In a rising interest rate market, a lot of people in bond mutual funds take some or all of their money out of the mutual fund which forces the mutual fund manager to sell bonds even if they didn't want to. They have to generate the money to pay back the investors and that could drive the value or the price of bonds down even further. Ideally, you want to use individual bonds so you know for sure you get your money back when the bond matures. If you have a small account, and I would say a small account would be $200,000 or less, then you may not have enough money to properly diversify into individual bonds and you may have to still use bond mutual funds and if that's the case in a rising interest rate market you want to focus on short term bond funds or floating rate bond funds. Buying individual bonds as part of your investment strategy will help you move one step closer to experiencing your version of an incredible retirement doing what you want, when you want.
Views: 1625 Brian Fricke
Owning individual bonds vs. bond funds.
Owning individual bonds vs. bond funds.
Views: 324 Bill Gunderson
Dave Explains Why He Doesn't Recommend Bonds
Learn to budget, beat debt, & build a legacy. Visit the online store today: https://goo.gl/GjPwhe Subscribe to stay up to date with the latest videos: http://www.youtube.com/user/DaveRamseyShow?sub_confirmation=1 Welcome to The Dave Ramsey Show like you've never seen it before. The show live streams on YouTube M-F 2-5pm ET! Watch Dave live in studio every day and see behind-the-scenes action from Dave's producers. Watch video profiles of debt-free callers and see them call in live from Ramsey Solutions. During breaks, you'll see exclusive content from people like Rachel Cruze, and Chris Hogan, Christy Wright and Chris Brown —as well as all kinds of other video pieces that we'll unveil every day. The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country!
Views: 237283 The Dave Ramsey Show
7 Painful Ways to Lose Money Investing in Bonds
Did you know that there are 7 different ways to lose money investing in bonds? That’s right, investing in bonds isn’t always a safe and low-risk investment. However, once you know and understand the risk associated with bond trading, then the chances of you losing money go down drastically. To download your FREE Report called, “The 7 Ways To Lose Money With Bonds”, check out: http://www.retirementthinktank.com/bondreport Now bonds have traditionally been viewed as a very safe way to create a steady stream of cash flow, and many brokers and financial advisors recommend bonds as part of a solid balance to any financial portfolio. And all of that is true…most of the time. The big issue with bond risk (and how people lose money with bonds) is when any of these 7 risk factors arise. And even worse, when any of the 7 risks combine at the same time, it can prove catastrophic. I will give you a basic review of the 7 different ways to lose money in bonds here: 1. Lack of Liquidity in bonds – Although the bond market is larger than the stock market in total value, there are far fewer bond traders and bond investors comparatively speaking. So when issues arise with a certain bond (like a city or municipality defaulting on their bonds, bankruptcy, etc), it can leave the average investor high and dry with no one to sell their bond to. 2. Interest Rate Fluctuations – Bond prices are inversely related to interest rates, so when interest rates rise, bond prices (the price that you buy and sell bonds) goes down. And with interest rates close to all-time lows today, this is a bubble just waiting to pop once interest rates start rising. And if they rise quickly, watch out bond prices! 3. Bond Creditworthiness – This is an important issue as the creditworthiness of the bond issuer determines the yield, and thus your risk/return. For instance, you might not get a great return on a United States Treasury bond, but you can sleep at night knowing there is little chance it will default. On the other hand, you can get hundreds of times more yield on a low-grade junk bond, but the chances of you losing money (or even all of your investment) go up significantly compared to a US Treasury bill. 4. Inflation / Hyperinflation – Generally speaking, inflation usually means higher interest rates. And since we know that interest rates are inversely related to bond prices, high inflation can destroy the value of your bond. Not to mention, in times of inflation the cost of everything (consumer goods) is going up, while your bond investment doesn’t. So higher inflation could render your bond interest negative after you factor inflation into the equation. 5. Reinvestment Risk – This risk pertains to the opposite issue of the others in that it occurs in times of a slowing economy, or a declining interest rate environment. When interest rates go down, bond investors are forced to reinvest their bond interest (and any return of principal) into new securities that will have lower rates of return. Of course this will reduce the overall income that is being generated by your bond portfolio. 6. Bond Fund “Backfire” – Bond funds have traditionally been considered very safe as they spread the bond risks out amongst many different bonds (versus an individual bond). And this is usually the case. However, bond funds can “backfire” when a bond manager starts replacing bonds as they mature in a rising interest rate environment. And if the bond portfolio loses enough value that investors start leaving the fund in droves, then the bond manager might have to start unloading high yielding bonds to meet the early redemption's. This doesn’t happen that often, but when it does, it is painful to all involved. 7. Making Bad Bond Assumptions – Finally, don’t ever make the assumption that your bond or bond fund is free of risk and can just cruise on auto-pilot without you ever having to review or check up on. This is where many bond investors get into trouble by thinking they can buy it and forget about it. Stay educated on what is going on with your bond, watch interest rates, and don’t chase bond yields! Finally, always get the advice of a licensed bond specialist to make sure that you never get burned by any of these bond risks. To download your FREE “7 Ways To Lose Money With Bonds” Report, go to http://www.retirementthinktank.com/bondreport Disclaimer: Nothing in this video or free report can be or should be construed as investment advice. This is purely educational and there is not enough information in here or the report to make educated investment decisions. Always consult with a financial advisor before making any investment decisions.
Views: 130596 Retirement Think Tank
Which Bond Fund ETF Should I Invest In? Vanguard Long-Term Bond Funds ETFs With High Yields!
2018 Vanguard Long-Term Bond Fund ETF's With High Yields! Which Vanguard Bond fund should invest in? Learn about the best Vanguard dividend funds (Index Fund ETF's) Find out about the 4 top performing Vanguard Bond ETF funds available through Vanguard. The spreadsheet in the video can be downloaded here: Dropbox link: https://www.dropbox.com/s/ky22y2y0lt8ru0a/Top%204%20performing%20Vanguard%20bond%20funds%202018.xlsx?dl=0 or http://moneyandlifetv.com/downloads Video Outline and Time Stamps so you can quickly jump to any topic: • Vanguard Extended Duration Treasury ETF (EDV) - 1:22 • Vanguard Long-Term Bond Fund ETF (BLV) - 5:25 • Vanguard Long-Term Corporate Bond Fund ETF (VCLT) - 7:34 • Vanguard Tax Exempt Bond Fund ETF (VTEB) - 9:05 • Vanguard bond fund etf comparison - 11:38 • Bond Fund Pros and Cons (Bond Risks, etc) - 12:10 In this very detailed review you will learn about the four Vanguard Long-Term Bond Funds Etfs (Index Funds) available to invest in. The four Vanguard Long-Term Bond Funds 1.Vanguard Extended Duration Treasury ETF (EDV) 2. Vanguard Long-Term Bond Fund ETF (BLV) 3. Vanguard Long-Term Corporate Bond Fund ETF (VCLT) 4. Vanguard Tax Exempt Bond Fund ETF (VTEB) Check out some of our other videos and playlists here: ♦ Investing in the stock market!: https://goo.gl/yVAoES ♦ Save money, budget, build wealth and improve your financial position at any age: https://goo.gl/E97nJj ♦ Learn more about how federal income taxes work: https://goo.gl/D1hCX1 ♦ Ways to improve your life at any age: https://goo.gl/uq72bu Subscribe for our future weekly videos. New videos typically every Sunday or Wednesday. Do not forget to help out a friend and share this information with them as well. About me: I'm passionate about helping people build wealth by learning more about personal finances, investing and taxes. My mission is to help people improve their financial position career and life. I also enjoy teaching others about the accounting profession, tech tips, and helping people overcome challenges in their everyday life as well as their career. You can find our content on other internet planets such as....... My Website: Moneyandlifetv.com Twitter: https://twitter.com/Mkchip123 Facebook: https://www.facebook.com/moneyandlifetv/ ***Disclaimer*** All of the information in this video is presented for educational purposes only and should not be taken as financial, tax, or investing advice by any means. I am not a financial adviser. Although I am a CPA I cannot advise someone for tax purposes without knowing their complete tax situation. You should always do your own research before implementing new ideas or strategies. If you are unsure of what to do you should consider consulting with a financial adviser or tax accountant such as an Enrolled Agent, or Certified Public Accountant in the area in which you live. Thanks for taking time to check out this video, and our channel. Have a great day and we will see you in the next video!
Views: 7944 Money and Life TV
🔴Bonds vs Bond Mutual Funds.  Develop a Portfolio for Income
Bonds vs Bond Mutual Funds. Develop a Portfolio for Income. Understanding bonds and bond mutual funds. Subscribe to our channel https://youtu.be/Ye2ijkO6LQ4 😃 👍 Thank you for a Thumbs Up Who are we? The Wisdom Investor is all about providing valuable information and education to help you accumulate a nest egg for retirement. People of all ages can benefit from our videos. We want to help you build your financial wealth. You can build your financial wealth by saving, investing and managing your expenses. In addition we cover topics like Social Security, debt, housing, expenses, withdrawing money, health care, tax strategies, exercise and where to live. Website http://www.wisdominvestor.com Planning for Retirement http://www.wisdominvestor.com/weekly.htm Investing ETF Funds http://www.wisdominvestor.com/market.htm Contact [email protected] These People Will Not Get Social Security https://youtu.be/_7V6Xzqum0o 50 Years old and No Money for Retirement https://youtu.be/TL2AOm-qAmM How Much Income with 400,000 Savings? https://youtu.be/bezM82g_ltk $300,000 by 65 How Much Income Will I Have in Retirement? https://youtu.be/LH0ekQDn4o8 $400,000 At 55 Years Old and Retire Early https://youtu.be/jdttmBH9mLA Should I Take Social Security at 62? https://youtu.be/AYiMziBnBis Financial Independence in 12 Years https://youtu.be/C1__3PTRAGA Build a Stream of Income https://youtu.be/Vi_kgQ9NvfQ How to Have More Money https://youtu.be/Vi_kgQ9NvfQ How Much Social Security If I Make $50,000 https://youtu.be/vDtInklwmfM How Much Money to Save For Retirement https://youtu.be/ZOgkLUyZ5kI Will My Income Last During Retirement? https://youtu.be/tIFA_y20Kko Dividend Investing with Stocks and ETF's https://youtu.be/JVOD7zli8uI Expenses During Retirement https://youtu.be/UuYPrW2t39I How to Get Out of Credit Card Debt https://youtu.be/OnL1-lVmMZQ Should I pay off my mortgage? https://youtu.be/vzmPKj2gE_I When to Buy Stocks https://youtu.be/yg09pAwcadU Technical Indicators for Buy Signal - https://youtu.be/9JVokot0-SA
Views: 78 Wisdom Investor
Bond Fund Vs GICs
One of the oldest questions in investing is whether you should own individual bonds, GICs, or bond funds to get your fixed income exposure. Many people believe that bond funds are risky, especially in a rising rate environment, due to the potential for price fluctuations. On the other hand, the story goes, individual bonds and GICs guarantee your principal. This is true, but it is also misleading. ------------------ Follow me on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ Visit PWL Capital: https://www.pwlcapital.com/teams/passmore-felix/ Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIn: https://www.linkedin.com/company/pwl-capital/ You can find the Rational Reminder podcast on Google Podcasts: https://www.google.com/podcasts?feed=aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz Apple Podcasts: https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2 Spotify Podcasts: https://open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO?si=hjZNfLKuSjSeWX38GPqhVA ------------------ Bond Fund Vs GICs
Views: 5331 Ben Felix
3 Steps to Easy Bond Investing [Market-Proof Your Portfolio]
Stop missing out on your best opportunity for cash flow and safe returns. Learn the secret to investing in bonds and get started now with Step-by-Step Bond Investing https://amzn.to/2MqKE5d Bond investments are way underrated by investors with less than 2% of investors holding any fixed-income at all in their portfolio. That’s despite the fact that bonds provide rock-solid cash flow and safe returns compared to stocks. In fact, bonds have actually beaten the return on stocks during the last decade. Now I love investing in stocks just as much as the next person and I’m not saying you should ditch equities but bonds is going to be the secret asset you add to your portfolio that helps reach your financial goals. I’m going to walk you through three steps to investing in bonds to protect your money while still producing that return and I’ll show you how to find bonds in which to invest on any online site. I’m then going to share my favorite bond investing strategy, something that will make all this super easy so make sure you stick around to the end of the video. From explaining the basics of bond investing to giving you tips for investing in bonds, this video will give you all the tools to diversifying your portfolio and creating consistent returns even in a bear market. - Why bond investing could be the smartest investment decision you make - Stocks vs Bonds: how bond returns actually beat stocks - What happens to bonds when interest rates rise - 3 Steps to investing in bonds - How to pick bond investments and a fixed-income strategy for consistent cash flow SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #investing #stocks #investment
Myth Busting: Individual Bonds
Mullooly Asset Show: Ep. 86 - Individual Bonds In Ep. 86, Brendan debuts as host, and he talks about some key differences to keep in mind when considering owning a bond fund versus an individual bond. 0:35 - "With interest rates rising, I've heard owning individual bonds is safer than owning bond funds. Is this true?" Mullooly Asset Management is a fee-only investment advisory firm located in Monmouth County, NJ. We work to educate our clients regarding managing the risk in their investments. Tom Mullooly is an investment industry veteran of over 30 years. Prior to launching the "Mullooly Asset Show," Tom (along with his sons) recorded close to 200 podcasts and nearly 200 videos, which can be found on the site http://www.mullooly.net. The "Mullooly Asset Show" is a new chapter in furthering the education of investors young and old. We answer questions and cover topics that YOU bring up. Our topics and questions range from those brought up by clients to those sent in by our viewers. Get in touch with us here: Website: http://www.mullooly.net Facebook: www.facebook.com/MulloolyAsset Twitter: http://twitter.com/mulloolyasset LinkedIn: https://www.linkedin.com/in/mullooly Email: [email protected] None of the content on our videos, podcasts, website or social media should ever be considered to be investment advice, financial planning advice or a recommendation to buy or sell investments. Nor should our content be considered research. Please our website for complete details. This video is not a recommendation to buy or sell any of the investments mentioned. None of the securities mentioned in this video represent past specific recommendations of Mullooly Asset Management. We rely on fundamental and technical analysis. Neither fundamental or technical analysis can predict the future, both methods have flaws. Past performance is no guarantee of future outcomes. Our Point & Figure charts are provided by our good friends at Dorsey Wright & Associates.
Key Things to Know about Fixed Income ETFs | Fidelity
Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 66309 Fidelity Investments
3 Rules for Investing in Bond ETFs
Robert Smith, chief investment officer at Sage Advisory, explains how he has positioned clients for the next Fed move, and how he picks exchange traded funds. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 11950 Wall Street Journal
Buy Corporate Bonds, Not Bond Funds
Buy Corporate Bonds, Not Bond Funds
How to Buy Bonds and Bond ETFs with Fidelity
In this video i show you how to buy bonds through fidelity's trading platform. If you are a beginner you may want to look into bond etfs because there are easier to buy. Typically if you want to buy a bond, you have to purchase a minimum amount. There are all kinds of different bonds such U.S. treasury bonds, corporate bonds, municipal bonds. Also make sure to check the coupon rate versus the yield. If the coupon rate is higher than the yield, the bond will be sold at a premium. Vice versa, if the coupon rate is lower than the yield, the bond will sell at a discount.
Views: 1847 Erick Vazquez
Bonds vs. Bond Funds
Gavin Informs and educates investors on how bonds and bond funds can react in a rising interest rate environment. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market or economic conditions.
Views: 132 Sterling Sequoia
Bond investing in challenging times  Bond funds vs  individual bonds #2
Trading Profits of $760 in just 72 seconds! TOP SECRET Formula! Click Here Now! http://tiny.cc/Profit-Autopilot You've probably heard a lot about the brand new ABS software this week, but if not, here's what you're missing: http://tiny.cc/Profit-Autopilot With AutoBinarySignals, you can: 1) Get started in just a few minutes from right now. 2) Can be used by Beginners. 3) Super-Accurate '80-100%' Leading Signals! 4) Uses a Risk/Reward Stabilizing System 5) Take revenge on the brokers who have happily taken all your cash for months. 6) Unqiue MPMIS - Multi-Indicator System 7) Use's a sepcialist Supply/Demand Price Predictor. 8) Auto-Adaptive Profit-Trade Technology™ 9) Earn a reputation as the binary trader "in the know". It is not important if you're just looking to just take a cheap $799 weekend cruise or your trying to create a livelihood from trading and want to earn $5,341.55 a week or even up to $9,711.09 in a day. With ABS, anything is possible for you. Unique Scalping Technology that WINS! 170+ Pips Profit in only 3 trades on M5! Click Here Now! http://tiny.cc/170_Pips_Profit Hedge Fund Traders Are Some Of The Highest Paid People On Earth, And One Of The Best In The World Wants To Show You How To Consistently Double Your Account Every Month... With The Forex Gemini Code Doubling Your Account Monthy Is Easy! Click Here Now! http://tiny.cc/Forex_Gemini_Code
Views: 3 Pablo Humpries
Does index fund investing work for bonds?
Index fund investing is often most associated with stocks, however the same passive strategy can also be used for bond investing. Scott Donaldson of Vanguard Investment Strategy Group says index fund investing can be equally as effective for bonds. **For more information about Vanguard funds, including at-cost services, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.** All investing is subject to risk, including possible loss of principal. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. © 2014 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.
Views: 9139 Vanguard
How To Invest in Corporate Bonds
BondSavvy founder Steve Shaw shows viewers how he achieves high returns investing in undervalued corporate bonds that can appreciate in value. Few people invest in corporate bonds, but Steve wants to show you how to do it successfully. He discusses his unique approach to bond investing, the 5 myths of corporate bond investing that keep many investors in underperforming mutual funds, and a recent corporate bond investment recommendation. TOC: Time Summary 0:00 Kick-Off 0:56 Achieve Equity Upside Without the Equity Downside 2:04 The Unremarkable Returns of Mega Bond Funds 3:06 My Recent Bond Investment Returns 3:47 How I Think Differently About Bond Investing 10:32 My Goal for This Presentation 11:01 Agenda 12:17 Disclaimer 13:34 Importance of Becoming a Strong Corporate Bond Investor 16:23 Current Investor Asset Allocation 17:59 My Bond Returns vs. iShares AGG ETF 18:59 Why Own Actual Bonds Rather Than Funds? 20:50 Five Myths of Corporate Bond Investing 21:44 Myths #1 & #2: An Opaque Market for the Super-Rich 24:27 Are You Getting a Fair Price? 29:47 Myth #3: You Can’t Beat Low-Cost Funds 31:28 Myth #4: Low After-Tax Returns Given Low-Rate Environment. Also, a review of a 54% bond investment return 35:33 Interest Rates Are NOT the Primary Driver of Bond Prices 38:17 An 8.94% After-Tax Return on a Microsoft Bond 39:57 Myth #5: You’ll Get Ripped Off if You Sell 43:46 Review of Depth of Book 44:07 Advantages of Individual Bonds vs. Bond Funds 47:22 BondSavvy’s Value Add 48:18 Narrowing Down Bond Search Results 50:34 Review of Recent Investment Recommendation 54:19 Financial Analysis of Recommended Bond 1:03:13 Before you invest… 1:05:04 Closing Remarks
Views: 7430 BondSavvy
Bond investing in challenging times: Bonds and your portfolio
In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss the role of bonds in your portfolio. Notes: • All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. • Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. • Diversification does not protect against a loss in a declining market or ensure a profit. • Past performance is not a guarantee of future results. • The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. • Vanguard Marketing Corporation, Distributor.
Views: 6998 Vanguard
Municipal bonds and your portfolio
Taxes, quality, risk: There are many factors to weigh when building your portfolio. Vanguard fixed income experts Daniel Wallick and Chris Alwine describe the important role municipal bonds can play in a diverse investment strategy. All investing is subject to risk, including the possible loss of the money you invest. Credit-quality ratings are obtained from Standard & Poor's and are measured on a scale that generally ranges from AAA (highest) to D (lowest). *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 6714 Vanguard
2019 Bond Market Outlook
We ended 2018 with a cautious outlook on the bond market. Our biggest concern was that the Federal Reserve’s series of interest rate hikes would reduce demand for bonds, especially bonds in the riskier segments of the market like high-yield bonds; but recently the Federal Reserve has indicated that they’re unlikely to raise interest rates again in the near-term. Does that mean we should throw caution to the wind? Kathy Jones takes a look on this episode of Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (0219-95X1)
Views: 8716 Charles Schwab
Advantages of Investing in Municipal Bonds
This video discusses the advantages of investing in municipal bonds: namely, the historically lower risk of default (relative to corporate bonds) and tax-exempt nature of most municipal bonds. The video provides an example to show how the after-tax return of a municipal bond can be higher than a corporate bond that has a higher pretax yield. The video also demonstrates why municipal bonds are more attractive to high-income investors by showing that the tax-equivalent yield of a municipal bond increases as a person's tax rate increases. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 10229 Edspira
Why We Use Bond Funds
Michael talks about the reasons why we use Bond Funds at Yardley Wealth Management. Transcript: People ask all the time "why do we use bond funds instead of individual bonds?" For two main reasons; one is for diversification and the other is pricing. In terms of diversification it is really hard to get a diversified bond portfolio unless you have tens of millions of dollars because bonds can be diversified by the different federal governments around the world, different state municipal governments, corporations, municipalities. They can be diversified by credit quality, Triple A to Double A to Single A to junk bonds. Maybe they could be diversified by geography like where in the world are they and for corporate bonds they can be diversified by sector of business you are in wither its healthcare or manufacturing. And so to get a diversified portfolio it is really hard to do that because you need a lot of money. So instead we buy the bond fund because we can get a diversified portfolio and pay a very small expense for it, typically a tenth of a percent per year. The other big reason is pricing. Unless you are a big institution, bonds are not marketable or liquid. If you go to buy or sell a share of IBM you can go look online anytime the market is open and see what it trades for, what the last trade was, and what people are offering and asking for a share if IBM. But if you go to sell a bond there are more than a million bonds outstanding versus maybe ten thousand stocks so a lot of bonds don't trade all the time and its hard to know exactly what they should be worth. Ive been in this business almost seventeen years and whenever I have tried to sell a bond for an individual client when they transfer in with a bond and want to get some pricing on it, it has always been priced less than what the clients' statement says or what the clients' account says online. And so its hard to get good pricing. If someone expects their bond to be worth fifty thousand dollars and I try to get bids for it and its worth forty five thousand or forty seven thousand dollars thats a big haircut and thats not one we want to take. So we try to avoid buying individual bonds. Sometimes we are stuck holding them cause we can't sell them for the prices until they mature but all things considered we would rather have bond funds than individual bonds.
Bond funds Part 2 | Debt funds | Bond funds explained
In this video, we will be talking about the facts and figures of Bond Funds and their criteria like if the funds are less than 3 years you need to pay short-term capital gains tax or STCG. Under section 112 of the Income-tax act mandates: 20% long-term capital gains tax for longer investment horizon. These funds are invested solely in bonds and debt instruments. The exact type invests in will depend on its focus, but investments may include corporate, government, convertible bonds and municipal in addition to other debt securities like mortgage-backed securities (MBS). A bond fund an also be referred to as a debt fund. A bond fund is a mutual fund invests in bonds. For investors, a bond fund is a more efficient way of investing in bonds than buying individual bond securities. Bond funds do not have a maturity date for the repayment of principal, therefore, the principal amount invested may fluctuate from time to time. In addition, investors indirectly participate in the interest paid by the underlying bond securities held in the mutual fund. Interest payments are made monthly and reflect the mix of all the different bonds in the fund, which means that the interest income distribution will vary month to month. A bond fund manager sells and buys according to market condition and rarely holds bonds until matured. ----------------------------------------------------------------------------------------------------------------------------------------------------- To know which one to pick, know your own goals and risk profile. We here at MyWay Wealth are happy to guide you every step of the way on the easiest direct mutual fund platform in India. ----------------------------------------------------------------------------------------------------------------------------------------------------- Speaker Info:- Dipika is the Vice President alongside head of business development at MyWay Wealth. She has 11+ years of experience and 1000+ conversations in investments, personal wealth management, advising clients, communication & relationship management. She is creative, witty and quick to grasp new concepts. A powerhouse in her own right. You can reach out to her on : Whatsapp number: 7975755821 Email ID: [email protected] ----------------------------------------------------------------------------------------------------------------------------------------------------- Download links: Download android app: http://bit.ly/2OMEWvn Download ios app: https://apple.co/2PVqN2C ----------------------------------------------------------------------------------------------------------------------------------------------------- Check out our: Website: http://mywaywealth.com/ Facebook Page: https://www.facebook.com/mywayw/ Twitter: https://twitter.com/mywaywealth Instagram handle: https://www.instagram.com/myway_wealth/
Views: 39 MyWay wealth
Stocks & Bonds : What Is a Bond Fund?
A bond fund is simply a mutual fund that holds a lot of bond issues and is a fixed income instrument. Learn about the professional managers used with bond funds with help from a portfolio manager in this free video on personal finance and money management. Expert: Gregory Bramwell-Smith Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates. Filmmaker: David Pakman
Views: 1500 ehowfinance
How Bond Fund Investing Reduces Investment Returns
When you buy bond funds and similar passive investments, you are buying bonds at very high prices, which reduce your returns. You can buy bonds at discounted prices when purchasing individual corporate bonds, which reduces your risk and can increase returns. 0:00: How Passive Investing and Bond Bubbles Are Related 0:55: How Bond Funds Pay High Prices for Bonds 4:35: 15.1% Return in 2017 for Investment Grade Corporate Bonds 5:50: How Individual Bonds Beat Funds in 2016 and 2017 7:10: Wrap-up
Views: 217 BondSavvy
The Types of Bond Funds We Buy
Michael talks about the Types of Bond Funds we buy here at Yardley Wealth Management. Transcript: What type of bond funds do we buy for our clients? We buy bonds for specific purposes, the funds that we buy are short and intermediate term, investment grade and in tax qualified accounts, global bonds. In taxable accounts we will often buy short and intermediate investment grade municipal bonds. We buy the bonds that we do, which are high quality and shorter duration bonds, because those are the bonds people look to buy when the stock market is doing poorly and people are afraid to buy stocks. So when you hear the so called "Flight to Quality" which is when people get nervous about stocks and start buying treasuries or high quality muni's, those are the bonds we buy. The funds we buy buy those bonds and the reason we do that is so that when our clients portfolios suffer because the stocks are going down the bond funds would be going up. So the overall portfolio value is not as adversely affected as if we just had normal bonds or long term bonds or junk bonds. We take a very focused approach that we are going to but short and intermediate term bonds on funds that are going to be globally diversified and with that global diversification comes buying hedge against currency changes. So we don't want our bond funds to go up and down based on how the Euro or the dollar and Yen are doing. So the funds pay a very small amount of money and hedge the currencies so that the returns we get are the returns we would get from the bonds themselves not from the changes in currencies. Just a recap, we really prefer buying bond funds for our clients not individual bonds and the funds we buy are short and intermediate term, they are globally diversified when we can do it and they are of the highest quality. We don't buy junk bonds or we don't buy the extended credit bonds we just buy the ones that are the highest. Thats it, thanks!
What rising interest rates mean for municipal bonds
John Miller, Nuveen head of municipals, discusses how municipal bonds have been performing in an environment of rising rates.
Views: 958 CNBC Television
Muni Bonds- Guaranteed Returns, Tax Free
Are you looking for ways to decrease the taxes you owe on investment returns? What about earning guaranteed returns tax free? Muni bonds, formally known as municipal bonds, are debt issued by cities, states, or other municipal entities, to fund projects. Tax free muni bonds are one of the only investments that offer guaranteed returns, usually paid twice yearly. Interest earned through municipal bonds is federally tax free and state tax free for residents of that state. So if you are a California resident who buys a California municipal bond or bond fund, you avoid both federal and state income taxes on all interest you earn from that bond. If you enjoyed this video, please be sure to LIKE and SUBSCRIBE! For more tips, tricks, and resources to help improve your financial well-being, connect with Jordan on his website at https://moneyanswers.com and on Social: Twitter: @GoodmanJord or Facebook: jordan.goodman.7796
Views: 87 Money Answers TV
Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 576517 Khan Academy
Why Invest in Corporate Bonds
Describes the advantages of corporate bonds vs bond funds and ETFs and introduces BondSavvy, a company that teaches bond investing 101 and provides corporate bond investment recommendations through The Bondcast webcast series. More information at bondsavvy.com.
Views: 34347 BondSavvy
Higher Returns from Corporate Bond Funds [Hindi] Groww app fair play award
IL&FS crisis has made it difficult for financial companies to raise money from the banks they are now coming up with higher interest FD and NCD bonds to raise money from the public. Is this the right time to invest in Corporate bond fund ? I have been recognized as a genuine content creator by Groww. I have been awarded Groww Fair Play Badge for my genuine content. Thank you very much Groww for recognizing my talent and awarding me the badge. Guys, I am sharing a few links that will be useful for you: Website of Groww Fair Play Award: https://groww.in/p/groww-fairplay-award/ Download Groww App here: Groww App - Playstore https://groww.app.link/refe/abhishekshukla25 If you also want to participate in the Groww Fair Play Awards then Visit the website for more details.
Views: 1950 InvestorJi
Muni Bonds in an IRA and Why Bond Funds Suck - 12.22.2010
Munis in an IRA? ABSOLUTELY!!....and Why bond funds suck Want more? Visit us at http://www.valentineventures.com or subscribe to our YouTube channel
Views: 232 Valentine Ventures
Seeking Higher Yields in Tax-Exempt Bonds
Investors have been buying tax-free municipal bonds at a record pace this year despite historically low yields. Jim Murphy, manager of the T. Rowe Price Tax-Free High Yield Fund, discusses his strategy for earning higher tax-exempt yields and the outlook for muni bond investing. Learn more at http://trowe.com/29BGS4a
Views: 2599 T. Rowe Price
How bonds work
Investing can sometimes seem like either like a gamble or very dull. At the "gambling" end of the spectrum are shares, with the possibility of swift ups in price and swift drops in price. At the other end is cash in the bank -- a predictable investment with few changes day-to-day or month-on-month. Investors looking for a middle ground and looking to diversify do have other options. They can consider bonds. Bonds are something of a mystery to many people -- perhaps because they are not often talked about. But bonds can play an important role in managing investments. They can be a half way house between the risk of shares and property and the safety of cash. How do bonds work? At the most basic level, a bond is a loan. Or, more technically, it is a large loan that has been split into packages and sold to investors. Bond holders typically make money by receiving regular payments of interest (known as coupons) during the life of the loan. When the loan ends, their original investment is returned. Bonds may have lives of just a year or two or for 10, 20 or even 30 years. You can buy individual bonds or opt for units in a bond fund run by an asset manager. Like shares, bonds or bond funds can usually be sold at any time and the value of your investment may rise or fall. But bond prices usually move less than shares. That is why they are considered safer than shares but they are more risky than a bank deposit. The original investment and the coupon payments are secure for bonds, while with shares, there is no guarantee of receiving dividend payments -- or your original investment. Looking a bit more closely, there are two main types of bonds -- corporate bonds and government bonds. Corporate bonds are loans made by companies. Government bonds are loans made by governments. Corporate bonds are more risky because the company issuing the bond may go bankrupt. In bankruptcy, though, bond holders are paid before shareholders. Governments rarely go bankrupt so government bonds are safer than corporate bonds. And the lower interest rate on government bonds reflects this. Getting more technical, different types of bonds are designed to work in different financial conditions. In particular, index-linked bonds pay coupons and the original investment in a way that compensates for inflation. The can be attractive to investors who want to ensure the value of their investment does not fall if prices rise. Bonds don't have to be part of your investment portfolio. Some people are happy to invest exclusively in shares and property but if you want to spread your investment risk, if you want to diversify, remember that there is always a half way house in bonds.
Views: 90913 ING eZonomics
Risk Ahead - How Risky Are Bond Funds
When rates rise, how risky are bond funds? Investors have been allocated bonds into their portfolio, unaware of what happens to the values when bond yields rise. *** Please take advantage of my free ebook offer. Get a free copy of GROW: How To Invest Like The World's Best Investors: https://riverbend.leadpages.net/grow/ *** Typically, investors have been using bond funds as part of their individual asset allocation. As interest rates have fallen since the early 1980s (bond prices and interest rates have an inverse relationship), investors have not faced a period of rising interest rates. Rising interest rates are a bond funds worst enemy. A small increase in yields can have a significant impact to a bond funds performance. During past periods of "small" interest rate hikes, it was not uncommon to see bond funds with 10-20% declines. When the longer term trend of bond yields reverse, bond funds could see much larger declines. Since a typical asset allocation (60/40) may include a large allocation to bond mutual funds, investors who are unaware of what happens to bond prices in a rising interest rate environment could face much larger losses than anticipated. Please take advantage of my free ebook offer. Get a free copy of GROW: How To Invest Like The World's Best Investors: https://riverbend.leadpages.net/grow/
Views: 1227 John Rothe
68: Municipal Bonds, How Insiders Scale Their Tax Free Income
Michael Foster, the ‘CEF Professor’ from Contrarian Outlook, joins us for another episode to explain how to use municipal bonds to scale your tax-free income. During this episode, you’ll find out how to buy municipal bonds, determine if you should buy an individual muni bond, and understand the risk levels of the entire process. You’ll learn how a municipal CEF operates, what tools to use, and how interest rates impact closed end funds. Listen to the end to hear Michael’s top three muni funds and what Sam and Johnny Invest into themselves. Full Show Notes - http://investlikeaboss.com/ilab-68-municipal-bonds-insiders-scale-tax-free-income/ Links: Contrarianoutlook.com - https://contrarianoutlook.com/ The CEF Newsletter - https://contrarianoutlook.com/secure-fast-gains-cefs/WEB1 Where are we: Sam/Michael – Bangkok Johnny – Ukraine Recommended: Link to the newsletter: CEF Insider - https://contrarianoutlook.com/secure-fast-gains-cefs/NR-ILAB0817CEFI 2 Recent Articles on Municipal Bonds: The Shockingly Common Mistake That’s Costing You Thousands - https://contrarianoutlook.com/the-shockingly-common-mistake-thats-costing-you-thousands/ These 6%+ Yielders Are a Screaming Bargain - https://contrarianoutlook.com/these-6-yielders-are-a-screaming-bargain/ The muni funds recommendations discussed: Neuberger Berman New York Intermediate Municipal Fund (NBO) Nuveen New Jersey Quality Municipal Income Fund (NXJ) Pioneer Municipal High Income Trust (MHI) CEFconnect.com - https://www.cefconnect.com/ Discussed: ILAB 63 – Talking CEFs for 9.9%+ Yield with ‘CEF Professor’ Michael Foster - http://investlikeaboss.com/ilab-63-talking-cefs-9-9-yield-cef-professor-michael-foster/ Try FreshBooks Free - https://freshbooks.com/invest Books: Start Here – Recommended Reading - http://investlikeaboss.com/start-here/ Time Stamps: 06:09 – Are muni bonds boring? 07:27 – Why others invest in muni bonds? 09:01 – Tax considerations 10:02 – Three ways to buy municipal bonds 10:40 – Should you buy an individual muni bond? 13:00 – How does a municipal CEF operate? 15:25 – Average cap size 17:10 – Close end funds and rising interest rates 23:03 – Market trends and sell off 25:15 – Tools, software, and historical returns 26:59 – What is the risk level? 27:06 – Default rates 29:29 – California, New Jersey, Illinois 34:46 – Should you worry about fees? 38:55 – Recommended muni funds 48:42 – Investing in muni bonds 57:36 – Wealthfront investments If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! - http://investlikeaboss.com/bonus/ Copyright 2017. All rights reserved. Read our disclaimer here.
Views: 2314 Invest Like a Boss
Chief Investment Officer Greg Davis on the 2018 bond outlook
1/4/2018 Webcast: Our new leaders look ahead to 2018 Hear what the expectations are for bonds in today's market climate. Important information All investing is subject to risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. High-yield bonds generally have medium- and lower-range credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings. For more information about Vanguard funds, visit https://vgi.vg/2G1dTre to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. © 2018 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor of the Vanguard Funds.
Views: 6104 Vanguard