Bond Investing For Beginners | The Ultimate Guide

Video Description

Bond Investing For Beginners: This video covers a complete guide to understanding what bonds are, how they work, different types to consider, why to use them, how to invest in them, and the things you need to be aware of. - Enjoy! - Ray Dalio Article Mentioned: https://shorturl.at/WEQzf 💼 How To Build An Investment Portfolio (Free Guide) → https://dannysully.link/PortfolioBuilder Resources: 📈 Best Brokerage Accounts → https://investlane.com/brokerage-accounts 🏦 Top High-Yield Savings Accounts → https://investlane.com/high-yield-savings-accounts 🔒 Best Certificates of Deposit (CDs): https://investlane.com/cd-rates 📚 Free Learning Guides → https://dannysully.com/free-guides 🗞️ Join My Free Newsletter → https://dannysnewsletter.kit.com/profile 🌐 Explore InvestLane → https://investlane.com/ Subscribe: 📷 My YouTube Channel → https://www.youtube.com/@DannySully?sub_confirmation=1 🔔 InvestLane Channel → https://www.youtube.com/@InvestLaneMedia?sub_confirmation=1 🎥 Relevant YouTube Videos 🎥 https://youtu.be/6figVXfmRGE?si=_NBorFyaVG5QdVa0 https://youtu.be/OprjgqbKUBY?si=0kOfAdasD2OowiKq https://youtu.be/ENR7dlrp5yE?si=1CPjCc1b_WA7Wmaw https://youtu.be/GEyok0IzYUE?si=BQ9IMnRz27Sz9v4F https://youtu.be/PNwCjlomxrk?si=N0pB_-CvVGhutwiH https://youtu.be/jGZ6NRaChmU?si=KQiIJNZXOVQLCQ7Q https://youtu.be/N_nEHRLRcKQ?si=3uZi_jjn74NsGNuI https://youtu.be/2Eb6Y4VXWJs?si=O_CIdqU28l1nHBxk https://youtu.be/fAWccqRCyKI?si=i3eggTNXnZiF5Mq- https://youtu.be/PDeMxf8yadw?si=48w7rgw14v9TC2ty https://youtu.be/xRRSYKuEyZ4?si=jqYrdm-vju7yELmA https://youtu.be/ktpeNzqEVCs?si=dCQHUABDTut2BPI2 https://youtu.be/Noe5rBJhw5s?si=OWERAT3nQme_HUGf https://www.youtube.com/playlist?list=PLL80XtVsEZjOJXHxG8HXAozQ3JkDafdnr ⏰ Timestamps ⏰ 00:00 Intro 00:21 What Are Bonds? 01:38 Different Types of Bonds 06:41 Bond Prices & Risks 09:13 Why Invest in Bonds? 11:49 How to Invest in Bonds 16:38 Things To Be Aware Of What are bonds? Bonds are pretty much a loan that you give to a government or company, where they pay you back with a fixed amount of income on top of giving you the original payment back when the bond matures (expires). What are the most popular types of bonds? Although there are many types, some of the most popular bonds consist of Treasury Bills (T-Bills), T-Notes, T-Bonds, I Bonds, Series EE, and Municipal Bonds to name a few. What is a bond maturity date? This is the time that the bond expires and the issuer repays the full amount that you invested. What are coupon payments? Also known as interest payments because this is when you get paid your interest from a bond, and are typically paid out every 6 months (depends on the bond). Treasury bills have no coupon payments. Are junk bonds worth it? This is a personal decision, but realize that junk bonds are given the name because they come from companies that contain much higher risk and are less likely to pay out the interest, and in some cases, even the principal you invested. How do bond prices correlate with interest rates? The price of a bond has an inverse relationship to interest rates. When interest rates fall, bond prices generally rise. When interest rates rise, bond prices typically fall. Why invest in bonds? - Reliable income stream - Less risk than stocks - Safely preserve capital - Potential tax treatment - Great diversification What are the top things to be aware of with bonds? 1. Interest rate risk 2. Time & risk tolerance 3. Tax drag in taxable accounts 4. Asset location - Understanding the best locations to place your assets 5. Tax advantage options - Such as U.S. Treasuries and Munis. 6. Compare after-tax returns - high taxes? Munis may be better for you. low taxes? CDs may even be better. 🔔 Don't forget to subscribe with notifications on and hit that like button! Disclaimer: Certain links on this website lead to products or services that may earn Danny Sully an affiliate commission or referral bonus. As a member of an affiliate sales network, Danny Sully is compensated for directing traffic to partner websites, which may affect the placement or visibility of some products on this site. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active. This content is for entertainment only and does not constitute legal, tax, or financial advice. It is for general informational purposes. The presenter is not a licensed professional. Viewers should consult their attorney, accountant, or financial advisor for advice on specific legal, tax, or financial issues.