Posts Tagged ‘penny stocks’

How do Savings Bonds Work

Friday, March 27th, 2009

Wondering Why You Should Invest in US Savings Bonds?

Are you wondering why you should invest in United States savings bonds, or how savings bonds work? This is a question that not enough people are considering these days, because most people are pressing their luck instead by gambling with stocks and other investments. So many people are turning to penny stocks thinking that they cannot lose, but this thrilling stock market is no way to turn a buck. Instead, people should look at savings bonds as a valuable part of an investment portfolio even if they do not appear to be as exciting as an investment.

First of all, you need to understand what a U.S. Savings Bond is if you want to take advantage of these lucrative investments. Back in the day, savings bonds were a popular form of long term investment for people who could not afford to buy common stock. This is back when a long term investment was only an investment that lasted longer than a couple of weeks. There are plenty of different savings bond options available to you out there, but the ones that are the best and the most worthy of your time are the ones that are backed by the United States. At their basic level, these savings bonds are a promise that if you lend money to the government, you will get it back with interest attached. The one risk lies in that the entity you lend to may not be able to pay it off as they have agreed to. However, when lending to the United States Government through US treasury bonds, the risk is a great deal less. Unless the entire American government goes bankrupt, you will eventually get your money back and you will earn interest in the process.

For all intents and purposes, you are lending money to the government when you purchase a United States savings bond. In the days of huge deficits, it is much easier for the United States government to raise money by selling US treasury bonds and savings bonds than to have to go to foreign lenders who require much larger interest rates and much higher returns on their investments. US treasury savings bonds are better for the government and the country because they do not require American citizens to pay taxes to pay foreign governments back for their loans.

Not only is this a lucrative deal for the government when it needs financial assistance, but because of compounding interest, it is also a lucrative deal for you. If you begin with a $1000 initial investment and make $50 monthly deposits, after taxes your nest egg would be nearly $20,000. Increase the interest rate by only a little bit to 3 percent and you will have a nest egg of $22,000 or more. If you think you can put away $100 a month instead of $50, your nest egg will grow exponentially to $42,000. There are also tax benefits associated with these bills that you will want to look into as well.

Photo Credits: 1

Originally posted 2020-11-26 05:01:05. Republished by Old Post Promoter

Related Articles
  • How Do Savings Bonds Work?

    What are Savings Bonds?

    Savings bonds are a major offering in credit unions and at banks. It is important to know what savings bonds are all about so that you can understand whether or not they will benefit you in any way. This page is going……
  • What Are Legitimate High Yield Investments? In this day and age, everyone is hurting for money, and locating legitimate high yield investments is not easy. Aside from scams, another consideration that needs to be made is the potential return on any investments that you make. Despite the fact that there are many attractive investment opportunities available……
  • Save Money with These 4 Tips

    Balance your checkbook!

    There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions……
  • Loanio Roundup – Dia de Los Muertos

    Financial State of the Economy

    Good morning and welcome to the Dia de Los Muertos edition of Loanio’s roundup. Dia de Los Muertos is a holiday celebration that takes place primarily in Mexico and celebrates the dead. It goes by Day of the Dead in English……
  • What Are Safe Investments?

    Safe investments are the safety net of your personal finances.

    If you are trying to accumulate wealth, set aside money for the future or you would just like to have a few more streams of income coming in, investments are usually the first thing people turn……
Related Sites
  • Random thoughts on investing I have a lot of thoughts on money, which in my case center not so much around how to spend it as how to save it. I rely heavily on my own prejudices, which are heavily influenced by my cynicism as an auditor who sees crooked finance and operations people……
  • The Day the Lending Lords Died This was first written last week, before the crazyness that happened on Monday.  Updates about everything else will come later in the week. What Happened? On Sunday, September 9, Treasury Secretary Henry Paulson pulled out his figurative “bazooka” and fired it down the street to Fannie Mae and Freddie Mac……
  • Protecting Your Investments In Times of Economic Crisis The United States economy is currently experiencing a serious financial shake up. No one really understands just how deep or how far reaching the damage is going to be, but what we do know is that there is going to be damage, and that we are going to be at……
  • Variable Annuities: The Numbers Back in february I wrote about certain situations where a variable annuity may make sense.  My conclusion was that there are particular investments it makes sense to put in a variable annuity:  high-yield junk bonds, intermediate-term corporate bonds, and REITs, provided you have: Maxed out all other tax-advantaged retirement options like……
  • The Typical American Family is Broke! It’s time to face the facts. Most Americans are absolutely horrible with handling money. Over time there has been a consistent rise in the amount of debt that people have, a decrease in the amount of investments that people have, and it’s only getting worse. Americans have a negative……

Stocks a Good Investment?

Wednesday, January 14th, 2009

Penny Stocks

Penny stocks are often regarded as a sound investment idea, but they are especially popular during times of a recession, though many people are unaware of the “why”. The reason why penny stocks are a good investment is because the prices of penny stocks for credible companies go up nearly every day, earning you a profit of more than 50 percent over the market price of the stock. Additionally, by going for stocks that are only purchased in great values, you are following an excellent strategy because the bulk trade is something that indicates a rise in the prices, as well as a rise in the chances that the return will be good financially. You should always observe the fine print of the company’s statements when it comes to penny stocks. If you fail to look at both sides of the moon, then you may end up incurring more loss than gain in your investment endeavors.

Right now we are witnessing a real global financial crisis, and many stock brokers are experiencing what is essentially a living nightmare. The global economy is in jeopardy, and many great companies are rising and falling during what is bound to be a truly depressing recession. While many large scale companies and their once booming stocks are suddenly falling, it does not mean all stocks are a poor investment, because there are some little known investment vehicles out there that can still offer excellent returns if you are willing to ride it out and be a little patient with the market. Are stocks a good investment? Traditional stocks may not be the best investment vehicle right now, but penny stocks on the other hand may be just the ticket.

When the stock market is thrown into obvious turmoil, there are obviously some new risks to contend with when it comes to traditional stock investing. Because so many companies are coming into business and going out of business, it can be overwhelming to choose stocks that are sure things, or even stocks that are going to be remotely profitable in the coming months. Penny stocks are shares that are floated in the stock market by smaller companies at values that are less than five dollars.

These penny stocks have a chance of yielding a really huge profit within a short period of time, provided that you are careful when you choose which companies to invest in, and make wise choices accordingly. Penny stocks are often regarded as a sound investment idea, but they are especially popular during times of a recession when other stocks are not sound investment opportunities. As the market dips, predicting the values of stocks diminishes a great deal, but penny stocks are much easier to appraise, and can turn much greater profits in shorter periods of time when sound investments are made.

Good research is vital when it comes to choosing penny stock companies. You should always observe the fine print of the company’s statements when it comes to penny stocks. If you fail to look at both sides of the moon, then you may end up incurring more loss than gain in your investment endeavors.

Photo Credits: 1

Related Articles
  • How Do I Plan For Retirement Every working man and woman is entitled to a retirement that is secure and comfortable. Saving and planning for retirement is not necessarily an easy process however because we are living longer and healthier lives in general, which means we need more money to survive retirement than ever before. If……
  • Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out……
  • Online Finance Magazines

    Online Finance Magazines

    Most people intentionally bypass the bay of finance magazines in the grocer or their local newsstand, believing that there is nothing in those magazines that will help them gain a better understanding of their money, the state of the economy, or anything else……
  • Free Investment Research Can Make Your Money Profitable

    Research Investments.

    Do you still recall learning how to conduct research in high school and college? If you are tired of researching subjects for school, it may be difficult for you to come up with a good reason to continue conducting research as an adult,……
  • 401k Planning Most people have questions when it comes to 401k planning and retirement. These people often wonder what 401k planning is, how 401k planning works, and how a dwindling balance can be revived. 401k plans can be complex, but they can also be quite easy to understand with a little bit……
Related Sites
  • Pay down debt or invest There’s a debate you read often on personal finance blogs: if you have a large sum of money, should you use it to pay down debt or invest? The answer is usually dependent on the person’s risk tolerance, but I think it also depends on the nature of the……
  • $1 Million by 2017. What’s Your Financial Goal? Before I started this blog, I did not really have a good financial goal. Actually, my financial goal was similar to 99.9% of other Americans…I wanted to be rich. But what is rich? In “Are you wealthy? Here’s a test,” I defined wealthy as: “…when income from my assets can……
  • Trade Stocks Learning trading stocks is trying to learn what the different type of stocks are in the market. This lack of investing knowledge can result in many novice investors making poor investment choices or avoiding the stock market all together. The fact is, if you intend to make money trading stocks……
  • Top 10 Things We Learned From Jim Cramer’s New Book “Stay Mad For Life” We really like Jim Cramer and enjoy watching “Mad Money”. Recently we had the opportunity to read his new book “Stay Mad For Life”. Here are the top 10 things we learned from the book: 1. Put into your 401(k) only what your employer will match because most 401(k) mutual……
  • New York’s 529 College Savings Program Adds International Fund To The Direct Plan I am thrilled with the announcement made by the New York’s 529 College Savings Program today. They finally decided to add an international investment option to their 529 Direct Plan. This new investment is called the Developed Markets Index Portfolio, which invest 100% in Vanguard Institutional Developed Markets Index Fund. I……