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/biz/ - Business & Finance

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57494549 No.57494549 [Reply] [Original]

Is investing in bonds a good idea?

>> No.57494569

>>57494549

It depends OP.

>> No.57494578

>>57494549
Would you like to freeze your money for 10 years in exchange of a 5% roi?

>> No.57494584

>>57494578

The money isn't frozen. I know this is hard for biztards to understand.

>> No.57494615

>>57494584
>well ackhsually it's not frozen because you get that slice of cake interest per year
duh

>> No.57494623

>>57494615

Go educate yourself.

>> No.57494647
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57494647

>>57494623
Go fuck yourself.

>> No.57494680

>>57494647

Stay poor.

>> No.57494706

>>57494578
maybe, but I was thinking of not going for 10 years at first, maybe 3-5 year bonds?

>> No.57495140

>>57494549
Half of my nw is in 8wk bills that I keep re-buying. It’s a good place to park extra money if you’re risk averse and don’t know what else to do with it. Biztards will poopoo bonds for low ROI, but they’re beating inflation so you are gaining real dollars

>> No.57496317

>>57495140
>8wk bills
Not American, what's the return like and how much do you put in?

>> No.57496402

>>57496317
Laddering into 90day t bills is common here as you compound the return by reinvesting the interest paid, but the actual rate will be different every month as per the bond auctions, so the total compounded apr will vary.

Idk where you're at but in Mexico there are investment firms that buy various foreign bonds and pay investors 9%-10% apr. They mitigate the risk of the higher apr foriegn bonds with more stable ones and garuntee the returns each year. I thought it was bullshit at first but it's real and some of these companies have been around for 40+ years. The downside of course is that you're returns will be in Mexican pesos.

I imagine there are companies all over Latin America doing similar with south American national bonds. It's certainly better returns than any of the bond funds us residents can pick from on their crummy 401k options lol and you're not as exposed as if you're holding the individual bonds of a country that defaults (which I assume happens a lot in some of those countries).