How should I start investing in bonds, or buy company shares?

4:48 pm on December 1, 2009 | 5 Permalink | Reply
Tags: bonds (167), stocks (1,088)

• 

  muncie birder 4:48 pm on December 1, 2009 Permalink
  

  Unless you are in need of current income, you should avoid bonds. They have two strikes against them right off the bat. 1. interest is taxed at the full tax rate. 2. you are loosing 4 to 5% of your capital annually to inflation despite the fact that bonds currently pay only 5% interest more or less.

  Although equity investments tend to fluctuate greatly in price at times, over the long term they tend to return 8 to 10% annually and that return is tax deferred until realized and when it is realized it is taxed about about 1/2 the regular tax rate. Oh yes, did I mention that many equities pay dividends which tend to increase over time and are currently taxed at a favorable tax rate.

• 

  mel s 4:48 pm on December 1, 2009 Permalink
  

  Bonds because companies can fold…. don’t put all your eggs in one basket.

• 

  DRA 4:48 pm on December 1, 2009 Permalink
  

  I suggest you get yourself a good financial adviser and discuss your long term goals. If you are young, you definitely want to take advantage of this bull market. You need to diversify your portfolio and the easiest way to do this is to buy into a growth mutual fund. Bonds are not a good move at the moment and in the long term.

• 

  yueer l 4:48 pm on December 1, 2009 Permalink
  

  Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.

  http://www.investingtutorial.info/

  good luck !

  wish you make fortune from investing !

• 

  sh.1959 4:48 pm on December 1, 2009 Permalink
  

  Stocks and bonds are purchased and sold through firms that are regiestered with the Securities and Exchange Commission as "broker-dealers". Representatives who are employed by these broker-dealers will help you place your order to buy or sell. But, before you talk to them, you should educate yourself as much as possible. These representatives get paid to broker transactions, not to give advice on what to buy or sell. Investing in individual stocks and bonds is risky and you should fully understand what you’re doing before investing.

Reply Click here to cancel reply.

Name (required)

Email (required)

Web Site

 

• Is the “buy and hold” theory of owning mutual funds for retirement savings now defunct? (1)
• Have most people moved their money out of stocks and into commodities? (5)
• Investment for beginners? (5)
• What are some aggressive stocks, or bonds to invest in? (3)
• What are some aggressive stocks, or bonds to invest in? (3)
• What are some aggressive stocks, or bonds to invest in? (3)
• where can I learn all about stocks and bonds and investing for free online? (2)
• where can I learn all about stocks and bonds and investing for free online? (2)
• What Stocks, Mutual Funds, or Bonds should I pick for a mock investment class? (1)
• What are the best stocks/bonds/mutual funds to invest in for long term growth in 2007? (5)