PDA

View Full Version : bonds?



Halfwit
10-27-2005, 08:13 PM
ok. im 17 i will be 18 in may. i want to get about 1000$ saved and a short while after i turn eighteen i want to buy some 5 year bonds. im buying 1000 worth and was wondering what the best kinds of bonds were(in companys,or the govt.) also about how much do you think i will make in that 5 year term? im doing it so i wont spend it thanks :goodjob:

MachNU
10-27-2005, 08:22 PM
look around banks and buy a 1 grand CD for 5 years and try to get the highest interest you can and try to get it at a mothly interest rate. Then in 5 years you will have probably double or triple the money in there!

Halfwit
10-27-2005, 08:23 PM
double or triple? that much?

MachNU
10-27-2005, 08:28 PM
well if i remember right if you do like a 8% intrest on it every month and do that for 5 years it can get pretty big

been awhile since i last did the mechanics of it so....i might be wrong but i am pretty sure i am close to right!

Halfwit
10-27-2005, 08:30 PM
damn. i thought the interest was only maybe 2,3,or4

MachNU
10-27-2005, 09:06 PM
migth be like i said long time since i did the mechanics of it!

SniperJoe
10-27-2005, 09:35 PM
Transaxle, you are completely incorrect . First off, the interest rate that is usually quoted is the APR (The A means ANNUAL). Second off, you are going to be hard pressed to find bonds that are going to yield 8% while not risking a whole lot. I apologize if that sounds harsh, but I don't want anyone thinking that they can get 8% a month in bonds.

Preludesi, PM me if you want to get into more specifics about investing.

static
10-28-2005, 11:07 AM
double or triple? that much?

No way. I just put away 20,000 into wachovia and got the best percentage they offered. 3.5% and if I touch it then it drops to 2.3% and that's with 20k in it. It would be nice to double it but that won't happen with 1k in even 10 years. Of course you can always try looking everywhere for the best CD.

Halfwit
10-28-2005, 11:23 AM
wasthat a bond or a savings account? how similar are they?

MachNU
10-28-2005, 02:00 PM
LOL like i said i might be wrong and like i said "it has been awhile since i last saw and did the mechanics of it" but 2.5-3.5% sounds alot more correct than my 8% but you also can get a monthly interest rate i do remember being that one correct but it is usually lower rates!

MachNU
10-28-2005, 02:01 PM
Transaxle, you are completely incorrect . First off, the interest rate that is usually quoted is the APR (The A means ANNUAL). Second off, you are going to be hard pressed to find bonds that are going to yield 8% while not risking a whole lot. I apologize if that sounds harsh, but I don't want anyone thinking that they can get 8% a month in bonds.

Preludesi, PM me if you want to get into more specifics about investing.

LOL none taking like i told him you might wait to hear what others say i dont remember everything!

rickgiblin
10-28-2005, 10:33 PM
isnt it the gov. bonds where you buy like $50 bonds and in like 7 years or something they go to 100... i remember being a little kid and always getting those dam things from my grandparents and being pissed off about it.

soobaroo227
10-29-2005, 03:45 PM
You may get a monthly interest rate, but that's simply just your interest being compounded monthly. So, if you have a say, 4 percent interest rate, you'll divide that by 12 to get your monthly interest rate. Compounding monthly is better though, because the more compounding, the more growth.

Halfwit
10-29-2005, 06:38 PM
thanks

static
10-30-2005, 01:58 PM
isnt it the gov. bonds where you buy like $50 bonds and in like 7 years or something they go to 100... i remember being a little kid and always getting those dam things from my grandparents and being pissed off about it.

I remember those days. My grandma would always give me those damn things and talk about how great they are. I think they $100 dollar ones are worth 50 but then double in 7 years. I really don't know or care enough to look up the details of it, although I think I remember them stopping the $100's or something to do with it as my grandma said.

chmura
10-31-2005, 07:10 PM
if u have a few thousand in extra cash invest it in RE........

thats the best way for your money to grow....

civic95
11-01-2005, 07:31 AM
It's hard to make much out of CD's unless you have more than 100K to put into it. With todays rate $100K, you'd be lucky to make $5K in intrest in a year. Then you have to pay taxes on that.

Halfwit
11-02-2005, 04:48 PM
It's hard to make much out of CD's unless you have more than 100K to put into it. With todays rate $100K, you'd be lucky to make $5K in intrest in a year. Then you have to pay taxes on that.
what is good then?

Elbow
11-03-2005, 08:16 PM
kinda off topic, how old do you have to be to cash a savings bond?

civic95
11-04-2005, 03:00 PM
what is good then?

Depends on the person. Actually you might want to consider an I Bond, they are paying up to 7% today. The intrest rate will automatically adjust every 6 months. Rates are expected to go higher over the next few yrs to fight inflation. So that's good news for you. For 5 years I'd expect to make about $500, on your $1000 investment.



RE is usually the best investment, but when you want your money, you have to wait till you sell it, or take an equity line of credit out. $1000 is not enough to invest in RE in my humble opinion.

civic95
11-04-2005, 03:05 PM
kinda off topic, how old do you have to be to cash a savings bond?

No certain age as far as I know, may want to call a bank though.

chmura
11-04-2005, 03:10 PM
Depends on the person. Actually you might want to consider an I Bond, they are paying up to 7% today. The intrest rate will automatically adjust every 6 months. Rates are expected to go higher over the next few yrs to fight inflation. So that's good news for you. For 5 years I'd expect to make about $500, on your $1000 investment.



RE is usually the best investment, but when you want your money, you have to wait till you sell it, or take an equity line of credit out. $1000 is not enough to invest in RE in my humble opinion.


u need good credit also....

civic95
11-04-2005, 03:15 PM
u need good credit also....

Good point, and at 17, 18 I doubt he has much, could be wrong though.

Halfwit
11-04-2005, 03:32 PM
what about a roth? ira bond?