I am new to this Bond's so, I am not sure which one is a good investment like state or federal bonds? Is it worth to Invest now?
-
Before answering this, we need to know what your goal is? (Are you a first time investor? Diversify investments that are 100% stocks? Heard about bonds, don't know what they are? Etc, etc.)– RonJohnCommented Mar 8, 2019 at 21:16
-
Thanks @RonJohn for your comment. Lets say I have 100$ in my account and I am not a aggressive investor whats the best way to invest this 100$ apart from regular stocks so I can save some money from tax.– Jo.........Commented Mar 8, 2019 at 21:19
-
$100, or $100K?– RonJohnCommented Mar 8, 2019 at 21:22
-
Lets say1000$ roughly– Jo.........Commented Mar 8, 2019 at 22:06
Add a comment
|
2 Answers
Both open-end mutual funds and ETF's are good choices for municipal bond investments.
However, if a leveraged investment is wanted in municipal bonds then there are closed-end mutual funds available.
A bad time to invest in bonds just involves looking for a short duration. A good time to invest in bonds involves looking for longer durations.
Some municipal bonds avoid both federal tax and state tax.
-
-
Any big name mutual fund or ETF is okay. There is a good list of closed-end funds at cefconnect.com and as listed under "Daily Pricing".– S SpringCommented Mar 9, 2019 at 6:21
I am not sure which one is a good investment like state or federal bonds?
They're both safe.
Is it worth to Invest now?
If for the long term, then yes, putting a portion (say 20%) of your investment fund in bonds is a good idea.
Lets say1000$ roughly
You're pretty much stuck with bond funds.
so I can save some money from tax.
Then you want either treasury bonds or tax-free municipal bonds from your state.