- Treasury Inflation-Protected Securities (TIPS)
One downside of many low-risk investment products is that the rate of the return often does not keep pace with inflation. That downside is eliminated with Treasury Inflation-Protected Securities (TIPS). With TIPS, your investment principal increases alongside the Consumer Price… read more…
- What Is the Yield Curve?
A yield curve is an economic indicator that tracks the relationship between long- and short-term bond yields. More specifically, it looks at the difference between short- and long-term interest rates in an effort to predict future market and rate movements.… read more…
- What Is Coupon Rate and How Do You Calculate It? Formula and Example
b The coupon rate is the fixed annual rate at which a guaranteed-income security, typically a bond, pays its holder or owner. It is based on the face value of the bond at the time of issue, otherwise known as… read more…
- What Are Structured Notes and How Do They Work?
Structured notes offer investors options that are otherwise unavailable, but there’s reason to be wary of them. While structured notes do contain a bond element that’s generally considered safe, the inclusion of stocks and derivatives can make them a bit… read more…
- Understanding Default Risk in Bond Investing
Default risk in bond investing refers to the chance that a bond-issuing company or government would fail to make its debt and interest payments. As a bond investor, you can lose 100% of your investment along with uncollected interest. But… read more…
- The Pros and Cons of Bond Index Funds
Bond index funds invest in a selection of bonds intended to reflect the performance of a particular index. They can provide investors with a window to diversified, low-fee investing. However, bond index funds also hold several disadvantages, such as volatility… read more…
- What Are Corporate Bonds & Where Can You Buy Them?
Both public and private corporations issue corporate bonds, which are a type of fixed-income security. Corporations place these investments on the open market to help fund projects and other major financial undertakings. Investors can purchase a corporate bond on either… read more…
- What Are Equity-Indexed Annuities?
Annuities are one way to fund your retirement. With an annuity, you exchange a certain amount of principal up front for payouts in retirement. An equity-indexed annuity is a popular type of annuity. The payout for these annuities is based… read more…
- How to Calculate Dividend Yield
If you invest in stocks, you may receive some dividends, which are payments made to shareholders in correlation with the stock’s performance on the market. To see if you’re getting a good dividend compared to other stocks, you’ll need to… read more…
- Can You Micro Invest Your Way to Wealth?
One common misconception about investing is that you need a big bankroll to get started. Some financial technology companies are challenging that notion by bringing the concept of micro investing to the masses. The idea is simple: Instead of investing large… read more…
- Pros and Cons of Using a CD Ladder to Build Savings
Looking at interest rates for certificates of deposit (CD), you see that the five-year CD earns, say, 2% more than the one-year CD. You’d love to get that higher rate, but you’re worried about locking up your money for so… read more…
- What Is a Surety Bond?
If you’re a business owner moving into an office that’s being renovated or you’re looking to have construction work done, you might want to consider a surety bond. It’s a contract that ensures that projects are completed and expectations are met. Not to be confused with other types of bonds, surety bonds are about transferring risk from… read more…
- What Are Savings Bonds?
U.S. savings bonds are essentially a loan you make to the government. When you buy a savings bond, you are giving money to the government in exchange for a guarantee you will get that money back, plus interest, at a predetermined later date. Investing in U.S. savings bonds is a good potential investment for new… read more…
- All About Dividend Investing
Publicly traded companies can decide what to do with profits. They can reinvest them to grow the company and raise share prices or they can pay some of their profits to shareholders as dividends. A company that pays dividends may do so as a compensation to shareholders – compensation for being a higher-risk investment or for low growth… read more…
- What Are Fixed-Income Securities?
Looking for a reliable and steady source of investment income? Maybe you’re getting closer to retirement and looking to take some risk out of your 401(k). Or maybe you have a low risk tolerance that means you shy away from equities in general. We’ve got you covered with our guide to fixed-income securities – what… read more…
- What are Treasury Bonds?
Treasury bonds — also known as T-bonds — are issued directly by the U.S. government. These bonds offer long-term stability with maturities of up to 30 years. While they typically yield lower returns compared to stocks or corporate bonds, their low risk makes them an attractive choice for conservative investors or those nearing retirement. If… read more…
- Types of Bonds
Bonds can help your investments maintain value in a financial downturn, but they likely won’t make you rich. Think about dipping your toe into bond investing? Or wondering what the point of the bonds in your portfolio is? Not worry. We’ve got you covered with our guide to the basics of bonds – and some of the many bond… read more…
- What to Do When You Find a Savings Bond
Sometimes parents and other relatives discover savings bonds they bought when they were a child but then forgot about, or find bonds that were purchased for their kids many years ago. The good news is that savings bonds gain value… read more…
- Risk and Reward in High-Yield Investing
Investing in high yield bonds can be a great way to increase your returns, but they inherently come with a greater degree of risk. Many financial advisers automatically steer their clients away from this arena, unwilling to put their reputation behind riskier assets. But that doesn’t mean you should necessarily stay away. Just understand and know what you are… read more…
- The SmartAsset Guide to Interest Rates
Interest rates are a percentage of the total amount being loaned to someone. The person paying off the loan is responsible for paying for the total amount of their loan as well as the interest rate on that loan. Individuals… read more…