Since this is an investment site, we naturally talk frequently about various types of investments — risk investments in particular — and the need to achieve a balanced and diversified portfolio. That balance is usually achieved by holding a certain percentage of your portfolio in safe, interest-bearing investments like certificates of deposit or CDs.
Bonds, Fixed Income and CDs
Within any portfolio there should be fixed-income options that include, bonds, bond funds and certificates of deposit (CDs). You can reduce risk and gain slow-but-steady income with these safe, interest-bearing investments.
The short answer to whether or not you can gift treasury bonds is; absolutely. But since they are U.S. government securities that are registered in your name, there are some steps you have to take in order to correctly complete the gift.
If you’re buying a business — one that would represent your primary occupation — you’d probably do an FBI number on that business to find out all you can about it, before sinking any of your hard earned money into it, wouldn’t you? That makes perfect sense. So why do people pay so much less attention to companies they’re investing money into, in the form of stocks and bonds?
Bond credit ratings are without a doubt the most important measures in the bond market. Three major ratings agencies – Moody’s, Standard and Poor’s, and Fitch drive the bond market with their research into bond quality.
Conveniently for most, wealth tends to correlate with age. And with age comes a more conservative, pre-retirement portfolio.
Bond. James Bond. The spy thriller movies are some of my all-time favorites, especially “Goldfinger“. He was a connoisseur of fine wines, fine women, fine sports cars, and may have been good with investing. After all, his favorite game was baccarat — he may have known that baccarat has some of the best odds at the casino.
Lately I’ve been adding to our security investment bucket US I Savings Bonds, or I-Bonds for short. In my opinion, they are a great bond to invest in but are often overlooked. The advanced investor or investment adviser often pooh-poohs them. Maybe because they generate no commission from them.