You Can Succeed When It Comes to Premium Bonds

Premium bonds are a great way to invest for your future. Not only do you get the chance to store your money in a secure environment but you get a chance to win a million pounds. Some people doubt the system but there is a plethora of success stories that prove that premium bonds are a good investment and is a great way to have fun playing the monthly lottery. Each month bond numbers are randomly picked and if are the lucky investor, you could win a prize from fifty to a million pounds. The following are some testimonials about the success for premium bonds.

One lady had a one pound bond purchased for her by her grandparents. Even though the bond was purchased in 1965, this single bond has been picked twice for a fifty pound and a hundred pound cash prize.  This has spurred the woman to invest heavily in the program and she encourages her children to invest also.  These two wins have created a saving culture within the family and with other wise financial decisions; this woman will be set up in her retirement age. Her family also will be able to save for college and their retirement also.

Another lady in Liverpool stated that she had twenty thousand premium bonds and that she was disappointed that she didn’t win anything after a few months. She had only won one fifty pound prize after the purchase. She was so up set that she wrote the National Savings and Investment agency and complained. Not only did she get a reply and an explanation but she also was notified that she had won another fifty pound prize and ironically the same bond number she won on the first prize was the same bond number that was picked for the second time.

This was picked up by a conspiracy theorist who spouted the odds that if one bond is bought for one person, that person will have a chance of winning every three thousand years or so. Also that person has a chance of winning the million dollar prize at the odds of twenty three million to one. He is skeptical about the ladies story, but refuses to pull out his premium bonds because he knows it is a safe place for saving and he still has faith that he will earn a prize, maybe the million dollar prize for his investment. He says not only he will save but will invest more until he gets to the cap of thirty thousand pounds.

Another lady supports the theory that newer bonds have a better chance to win than older bonds. She bought her son a bond in the 1961. Her son never won a prize for the bond since the purchase. The gentleman bought a new bond last year and won a fifty pound prize the first month. The theory that newer bonds win more frequently can be explained by the fact that the population and the popularity of bonds has increased since the sixties. Therefore the statistics are slanted more toward the new bonds than the ones bought decades ago.

March 31st, 2010 | Tags: , , , | No Comments »

The Many Different Kinds of Investments

Overall, there are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it.

There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.

Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth ñ or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine, and in other cases, it doesnít. Itís a risk.

Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand!

October 17th, 2009 | Tags: , , , , , | No Comments »

The Assortment of Different Bonds that Are Available

Investing in bonds is very safe, and the returns are usually very good. There are four basic types of bonds available and they are sold through the Government, through corporations, state and local governments, and foreign governments.

The greatest thing about bonds is that you will get your initial investment back. This makes bonds the perfect investment vehicle for those who are new to investing, or for those who have a low risk tolerance.

The United States Government sells Treasury Bonds through the Treasury Department. You can purchase Treasury Bonds with maturity dates ranging from three months to thirty years.

Treasury bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All Treasury bonds are backed by the United States Government, and tax is only charged on the interest that the bonds earn.

Corporate bonds are sold through public securities markets. A corporate bond is essentially a company selling its debt. Corporate bonds usually have high interest rates, but they are a bit risky. If the company goes belly-up, the bond is worthless.

State and local Governments also sell bonds. Unlike bonds issued by the federal government, these bonds usually have higher interest rates. This is because State and Local Governments can indeed go bankrupt ñ unlike the federal government.

State and Local Government bonds are free from income taxes ñ even on the interest. State and local taxes may also be waived. Tax-free Municipal Bonds are common State and Local Government Bonds.

Purchasing foreign bonds is actually very difficult, and is often done as part of a mutual fund. It is often very risky to invest in foreign countries. The safest type of bond to buy is one that is issued by the US Government.

The interest may be a bit lower, but again, there is little or no risk involved. For best results, when a bond reaches maturity, reinvest it into another bond.

October 17th, 2009 | Tags: , , , , | No Comments »