College Students Should Invest In Government Bonds
Government bonds and securities
Trust in our government has been declining in recent years. Given the current status of our economy it is less likely to think of the government as an option for building retirement. However, investing in government bonds and securities can offer protection from times of high inflation which will leave a reliable source of income during retirement. I bonds and treasury inflation protection securities are two of the easiest ways for college graduates to begin building a retirement fund. For recent college graduates government investing can be one of the easiest and safest ways to begin saving money for retirement.
Treasury I Bonds
Investing in treasury I bonds is a safe and reliable way for recent college graduates to begin saving money for retirement. I bonds are purchased for a minimum of $25 and up to a maximum of $5,000. …show more content…
Treasury inflation protection securities are purchased for a minimum of $100 or a maximum of $5 million. These securities can reach maturity at either 5, 10, or 30 years (Fenn, 2009, p. 161).
When searching for ways to begin building retirement getting a treasury inflation protection security is a good way to start. Unlike I bonds treasury inflation protection securities only have one interest rate and that rate is fixed at the time of issue. In order to protect against inflation, the original amount of the security is adjusted based on the consumer price index (Carlson & Haskins & Hansen, 2005, p. 51). This feature protects against inflation because it adjusts with the inflation, meaning if inflation rises the principle rises and likewise if inflation falls the principle falls. Another protection is that when the security is redeemed the holder is guaranteed to collect at least the original amount the security was purchased
Trust in our government has been declining in recent years. Given the current status of our economy it is less likely to think of the government as an option for building retirement. However, investing in government bonds and securities can offer protection from times of high inflation which will leave a reliable source of income during retirement. I bonds and treasury inflation protection securities are two of the easiest ways for college graduates to begin building a retirement fund. For recent college graduates government investing can be one of the easiest and safest ways to begin saving money for retirement.
Treasury I Bonds
Investing in treasury I bonds is a safe and reliable way for recent college graduates to begin saving money for retirement. I bonds are purchased for a minimum of $25 and up to a maximum of $5,000. …show more content…
Treasury inflation protection securities are purchased for a minimum of $100 or a maximum of $5 million. These securities can reach maturity at either 5, 10, or 30 years (Fenn, 2009, p. 161).
When searching for ways to begin building retirement getting a treasury inflation protection security is a good way to start. Unlike I bonds treasury inflation protection securities only have one interest rate and that rate is fixed at the time of issue. In order to protect against inflation, the original amount of the security is adjusted based on the consumer price index (Carlson & Haskins & Hansen, 2005, p. 51). This feature protects against inflation because it adjusts with the inflation, meaning if inflation rises the principle rises and likewise if inflation falls the principle falls. Another protection is that when the security is redeemed the holder is guaranteed to collect at least the original amount the security was purchased