Looking to buy a bond?
Hi I am 14 years elderly and after a summer of working I enjoy accumulate 1000$ surrounded by the guard. I want to invest adjectives 1000 of it into a bond so I earn some intrest ( I know not much but its better than newly letting it sit in attendance right? I never spend anything anyways. ) Im from Canada, what would be flawless to invest in and what type of intrest would I be looking at? 3,4,5%? how masses years should I lock it contained by for? ect I'm not enormously honest beside finances as im just 14. Thanks for the facilitate.
Answers:
Pick a bond that mature when you call for the principal.
Pick a regular bond if you have need of the income immediately or a not anything coupon bond if you don't - you'll bring back adjectives the interest at old age.
Look for bonds next to a BBB rating or better. You should carry around 5.5% immediately.
Do NOT buy a bond fund.
I would insist on you not to buy a bond. I would share you to put your money into a money flea market fund or a disc.
While you do not entail liquidity (the competence to convert your investment put a bet on into cash) buying such a small amount of bonds is going to hurt your return. Let me explain:
First of all, the minimum denomination of a bond is $1000. Some types of bonds the minimum is $5000.
When you go to buy a bond, the broker is going to charge you a levy. Let's vote that charge is $50. Doesnt come across similar to a sizeable amount, right? Except to be exact 5%! if you are buying a bond next to a 5% coupon that mode you are getting NO interest for a year. let vote you enjoy to put on the market it. Another $50, which way you would enjoy lost 2 YEARS of interest.
In a money bazaar fund you can see a current average return of 4.73%. That is after fees. In auxiliary, your money is guranteed (unlike a BBB bond that be recommended by someone else). AND you can receive it support whenever you want, in need waiting for the bond to ripened.
IF you are set on owning a bond, I would enlighten you only just to do a US hoard bond, one next to a realatively short parenthood, not a big let go bond where on earth you could lose adjectives your money.
But your best be it a money flea market fund or CD
Good luck!
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Answers:
Pick a bond that mature when you call for the principal.
Pick a regular bond if you have need of the income immediately or a not anything coupon bond if you don't - you'll bring back adjectives the interest at old age.
Look for bonds next to a BBB rating or better. You should carry around 5.5% immediately.
Do NOT buy a bond fund.
I would insist on you not to buy a bond. I would share you to put your money into a money flea market fund or a disc.
While you do not entail liquidity (the competence to convert your investment put a bet on into cash) buying such a small amount of bonds is going to hurt your return. Let me explain:
First of all, the minimum denomination of a bond is $1000. Some types of bonds the minimum is $5000.
When you go to buy a bond, the broker is going to charge you a levy. Let's vote that charge is $50. Doesnt come across similar to a sizeable amount, right? Except to be exact 5%! if you are buying a bond next to a 5% coupon that mode you are getting NO interest for a year. let vote you enjoy to put on the market it. Another $50, which way you would enjoy lost 2 YEARS of interest.
In a money bazaar fund you can see a current average return of 4.73%. That is after fees. In auxiliary, your money is guranteed (unlike a BBB bond that be recommended by someone else). AND you can receive it support whenever you want, in need waiting for the bond to ripened.
IF you are set on owning a bond, I would enlighten you only just to do a US hoard bond, one next to a realatively short parenthood, not a big let go bond where on earth you could lose adjectives your money.
But your best be it a money flea market fund or CD
Good luck!