including the federal alternative minimum tax. In addition, you may be subject to tax on amounts recognized in connection with the sale of municipal bonds, including capital gains and "market discount" taxed at ordinary income rates. "Market discount" arises when a bond is purchased on the sec...
These tax advantages are offset by lower interest yields. Municipal bonds typically have lowercoupon ratesthan similarly rated corporate issues with comparable maturities. Even if both bonds are investment grade, corporate bonds are generally considered higher risk. Investors are often offered higher yield...
are virtually free of any risk of default. Also, bonds offer a guaranteed return where stocks do not. And they're usually less volatile than stocks. But stocks outperform bonds over time, and have more upside potential. Whether bonds are less risky for you ...
The sale of investment accounts like stocks, bonds and retirement accounts requires documentation, as does the sale of personal property. 5. Seasoned cash Cash isn’t an acceptable source of funds for a down payment because it can’t be documented. If you have cash on hand, deposit ...
A portfolio manager is considering buying two bonds. Bond A matures in three years and has a coupon rate of 10% payable semiannually. Bond B, of the same credit quality, matures in 10 years and has a coupon rate of 12% payable semiannually. Both bonds are priced at par.(...
What are the risks associated with perpetual bonds? (1) The bonds are optionally callable i.e. the Issuer has the choice whether to return the capital or not. The issuer may call them (return your principal back) or the issuer may choose to. ...
Unlike stocks and bonds, a purchase of gold is not an investment in company growth. You won’t get dividends or interest from tangible gold. You may have to wait years for gold to go up in value. How to buy and keep gold coins ...
Federal Tax Free I-Bonds CPI-U and Inflation Tax Free Munis Inflation Protected Treasury Securities Buying T-Bills Mortgage Tax Breaks Buying Bank CDs Copyright 2010 by Morris Rosenthal All Rights Reserved Interest Calculation for Purchasing Treasury Bills Through TreasuryDirect A couple...
Ultimately, I don't think you'll regret buying Treasury bonds with your low-risk allocation of capital. A 5% yield is 1% higher than the4% Rule, which suggests retirees can withdrawal funds at a 4% total return and still not run out of money after 30 years. That's a comforting feelin...
Depending on your age and risk tolerance, you should have a percentage of your portfolio in stocks, bonds and cash. Stock purchases can be diversified between growth and blue chip stocks. Many people choose to diversify between consumer goods, non-cyclicals, technologies and utilities. Whenever ...