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on the radio with Paul Petillo
Join Paul Petillo, Dave Kittredge and Dave Ng every week on Financial Impact Factor Radio as they to discuss everything from retirement to insurance, investing to estate planning, from getting started to preparing to stop.
books by Paul Petillo
I just published my fifth book - this time with Smashwords! ReBuilding Wealth in a Paycheck-to-Paycheck World by Paul Petillo, copyright 2011 This ebook is available across all platforms including iPad and iPhone, Amazon and Sony.
on personal finance
In the world of personal finance, asking what's the worst that could happen is not the same as asking: "will I be able to afford this?" or "have I saved enough for retirement?"
More personal finance
on retirement
The Who, What, When, Where and Why of Retirement
If things are good, for some they won't be good enough. If it turns out that things are not so good, someone will ultimately benefit for this off-chance negativity.
More on retirement planning
on mortgages
American dream or not, the games you may have once played with financing your home are not available for the vast majority of homeowners.
More on mortgages and homes
on insurance
Insurance : Life, Health, Auto, Home
Is the insurance industry the next victim of the financial crisis?
Health Channel
on investing
The mutual fund investor has a great many more options available to them in the post-Great Recession marketplace. The question is: are they right for you as you make a retirement plan using 401(k)s or IRAs?
More on investing
on twitter @PaulPetillo
special features
Zack's Investment Tools: Stock Screener or Mutual Fund Screener
Calculators
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Ad Policy
Our recent financial discussions
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on treasuries
What are Treasuries?
There are certain things a bond investor interested in United States Treasury offerings needs to keep in mind.
First: A US Treasury issued security, whether it be a bond, a note, a bill, TIPS, I-Bonds, or EE Bonds, as well as HH Bonds and other securities are all considered a very liquid investment. That means that the difference between the bid and the asking price on the fixed income security you seek, will be very narrow making it easy for investors to find the right security at the right price. The Treasury prices their offerings in 1/32 (or $3.125 per $10,000) which keep price ranges (found most conveniently in the Wall Street Journal) very narrow. This makes their purchase very easy. Folks who want to buy Treasuries can do so directly through the Bureau of Public Debt.
Second:The safety of these offerings, backed by the fill faith and credit of the Federal government is no empty statement. This is the most trusted investment in the world. (There was a time about a century ago, when a private banker, J.P. Morgan had to bail the country out of a financial crisis. Making good on this promise is why managing the economy is so important.
Third:Interest gained from these investments is not taxed on a state or local level. It is however taxed at the federal level in many instances. Exclusion from taxes would include using the proceeds from a Treasury security if it were used for education.
Fourth: Treasuries are used as a benchmark for similar types of securities. Comparing not only the maturity but the yield to other offerings can be incredibly helpful when determining the amount of risk you are seeking.
Fifth: There is a good chance that an investor in Treasuries may be pleasantly surprised in the overall performance of their purchase. The tax advantage helps. The fact that there is no call on the offering (an distinct possibility on some fixed income securities if the interest rate falls significantly and the issuer "calls" back the bond) and no default (a problem of the borrower no longer being able to pay the bondholder). And should there be a financial crisis, a Treasury issued security is usually where other investors turn. This so-called "flight to quality" can also add to the offering's overall yield.
bluecollardollar: from the blog
Investment Day of Reckoning: Ignore it
bluecollardollar: resources
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