Types of Bonds Municipal Bonds Municipal securities, or "munis," are bonds issued by states, cities, counties and other governmental entities to raise money to build roads, schools and a host of other projects for the public good. Munis pay a specified amount of interest usually semiannually and return the principal to you on a specific maturity date. When considering an investment in municipal bonds, bear in mind that no two municipal bonds are created equal—and carefully evaluate each investment, being sure to obtain up-to-date information about both the bond and its issuer.
Better sign up today before they lower the rate again! Fixed annuities are "bad" in most situations, and should be avoided. Annuities, and Homework zero coupon bond life insurance, come from the same place - the life insurance industry. So they suffer from the same enormous and ubiquitous problems.
So this page is about that. The other advantages are too insignificant to list and mostly have to do with needing a bell or whistle. The list of major disadvantages far outweigh the one, and then the very few minor advantages.
The biggest reason to avoid them is because they are an expensive investment vehicle to own. The only other type of "investment products" that are more expensive are variable annuities and whole life insurance.
For the rest of this page, all life insurance company loads, commissions, fees, expenses, and charges will just be referred to as "fees.
Fixed annuities also pay life insurance agents the most money in commissions per buck invested, compared to every other type of non-life insurance financial product a financial salesperson can sell today - except variable annuities.
Annuities were not the rage before loaded mutual fund commissions dropped from 8. Then a decade later, the Internet came on online, and then discount brokers popped up everywhere, making it so investors could easily just DIY do it themselves.
Then aroundmore mutual fund families came online with lower loads. So the mutual funds I was selling dropped their commission rates from 8. But for the career peddler, the only options left that "paid anything," were annuities and whole life insurance. There were literally no other options, after limited partnerships went the way of the dinosaurs, and because stock trading commissions AKA individual securities were falling at the same rates.
Then no other product has yet to come online that "pays anything.
This is the one and only reason why they are so highly recommended by "financial advisers. Other common problems with fixed annuities are: So annuities sort of work like a Roth IRA, until you withdraw money from it.
Then you have the huge drawback of a traditional IRA because withdrawals are usually taxed at ordinary income rates. Only the life insurance company that sold the annuity to you can "buy it back. That pretty much describes every annuity sale. So these cases rarely go anywhere. The legal system says that you should have "caveat emptored," while you had the chance during the free-look period.
You were asleep at the wheel when that happened; so you snooze, you lose. So if you buy a fixed annuity, realized you failed, and then want to get out of it soon after you buy it, over a third of your money could just vanish for no good reason.
So fixed annuities are the investment vehicle that results in you being more "stuck" than just about any other. Even with whole life insurance, you can become unstuck by just stopping paying premiums, and then it will eventually die a natural death.
Only the spider benefits from you being stuck like a fly in their web. Not buying an annuity is the main financial disaster that you can easily choose whether or not to avoid. But once you sign any life insurance company contract, you are usually stuck with it for life with no hope of ever escaping.
There is just no way you can win the money game with any form of annuity product, period. Life insurance companies never had any good deals for investors AKA their policyholders in the past, they do not now, and they never will in the future. The first fundamental flaw in fixed annuity logic is this: This is NOT how anything works in the life insurance world!
But then the life insurance company usually deducts fees from it, so a little is shaved off annually. So if they do, then this is just part of the sheeple fleecing.Getting rid of paint smell.
Last Updated on Sunday, 12 February by ermand Sunday, 12 February Today’s question comes from Aaren. Aaren asks: Hi hope you can help!
My daughter’s room will not stop smelling. Fake News Papers Fake News Videos. A Few Abbreviations.
This next question is a really good example of a more abstract question. It simply tells us that if we have a line that's written in y = mx+b form, and my m value is greater than zero (therefore. Weebly makes it surprisingly easy to create a high-quality website, blog or online store.
Over 40 million people use Weebly to bring their unique ideas to life. Page 2 of 4 ACADEMIC INTEGRITY All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts.
So, default is the first risk associated with bonds. To help investors evaluate the risk in any company or government bond, various rating agencies evaluate their credit worthiness.
They use a scale ranging from AAA on down to D, kinda like high school.