Tuesday, January 17, 2017


  • in bonds, u end up paying, in effect, an implicit risk fee to the lender, so u don't make much income over the rate of inflation

債券 (bond)
  • 債券趕不上通貨膨脹
  • 宜只投資股票, 避開債券
  • 投資股票的總報酬仍是公司債的15倍, 更超過國庫券的30倍以上
  • 投資債券的風險: 利率升高時, 你得面臨兩難的選擇, (1) 忍受較低的票面利率, 一直撐到到期日, 或 (2) 以低於面額的價格認賠出場
  • bonds don't rise much more than inflation at best
  • bonds and bond funds are great tools for diversifying a portfolio and for ensuring current income
  • short-term bond:less than 2-3 years in duration and hence don't have significant interest rate risk
  • medium-term bond: maturity of 3 to 10 years
  • long-term bond: maturity of 10 or more years
  • bonds issued by corporations are generally a safer form of investment since u are paid back ur interest due and ur principal before the equity (stock) holders of the corporation; if the underlying corportation gets into trouble, you, as a debt holder, are paid first (but IRS, state payroll tax boards are still in front of u)
  • corporate bonds provide more yield than government bonds
  • government bonds are often considered safer than corporate bonds, but given the over borrowing of many government entities, this is no longer automatically true
  • Since state and local bonds frequently have tax advantages if u live in that state, they can get away with paying less interest.
  • if u are older, u should gradually own a smaller proportion of stocks and more bonds in ur portfolio, because in ur older years u want less volatility
  • if u might well need the money sooner, for whatever reasons, u may want to have a higher ratio of bonds
  • if u have enough to live off of and u want to grow ur family's long-term wealth, u may keep much more in equities than ur age may indicate
  • mix up the types of bonds in ur portfolio, from sovereign to corporate-rated bonds and even at times buying a small amount of bond funds focusing on lower-rated bonds and asset-backed bonds
  • mix both corporate and government bonds
popular series EE saving bonds
https://www.treasurydirect.gov/ for more information
  • when u purchase a series EE bond, u pay just half the face value of the bond, eg, u pay $ 50 for a $ 100 bond
  • u have to bold on to the bond for a bunch of years to be able to redeem it for $ 100; During that period, all the interest the bond earns if plowed back into the bond until it has earned enough interest to make up the difference between the $ 50 you paid and its face values ($ 100)
  • u are guaranteed that ur bond will reach its face value within 20 years, but if u don't redeem it then, it can continue to earn interest for up to 30 years from its issue date
  • u can redeem it once it is at least 12 month, but u will be hit with a 3 months interest penalty on any bond that u have held for less than 5 years
  • when u eventually redeem ur bond, u will owe federal income tax on the interest the bond earned; the only tax escape is if u happen to have been older than age 24 when the bond was given to u, and if the bond was issued after Dec 1989. If u meet those criteria, and u intend to use the bond to pay for college costs, ur federal tax will be waived.
  • You can redeem any EE/E bond that is at least one year old;l but if the bond is not 5 years old, u will forfeit 3 months interest as a penalty for ur early redemption
  • you are guaranteed that ur bond will reach its full face value within 20 years; redeem before that, u may not get the full face value
  • bonds that have reached their full face value can continue to earn interest for an extended period--up to 30 years past the original issue date of the bond; the guaranteed minimum interest rate during this extended period varies

國庫券 treasury bill
  • 要靠利率來投資, 長期國庫券是最好的標的, 因為國庫券不能提前贖回, 或至少要在距到期日五年內才可贖回
  • 很多公司債券和市政債券都在很短的時間內就提前贖回, 正當利率準對投資人有利時, 債券發行單位就要求提前贖回
  • 只有極少數的公司債是不能提前贖回的, 故建議買國庫券
  • 國庫券的殖利率 (yield) 幾乎被通澎吃光

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