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How to Make Money on Bonds

You can avoid paying taxes on the interest that you earn if you purchase municipal bonds from the US Treasury. You can earn more interest simply by adding money to your bond account instead of investing it.


When you buy a bond from the US Treasury, you are actually lending money to the US Government by way of a note. These notes are like small promissory notes that are backed by the full faith and credit of the United States of America. In return for the money that you are lending to the United States government, the United States government is guaranteeing to pay you a specific amount of interest (calculated on a semi yearly basis) until the loan term is up.





If you want to receive $10,000 from the United States government, you would purchase a $10,000 term "Tax Free" Treasury Note. In order to receive your $10,000, you would need to remain invested in treasury bonds until the end of the term, in this case, until the end of 2010. This will give you time to receive your $10,000, which will have been invested into your investment account and will have been taxed up front.


You can leverage the growth potential of stocks by simply adding money to your investment account as opposed to investing in the stock. For example, if you want to invest $10,000 into Facebook, you would first need to purchase a $10,000 stock or a $10,000 index fund, which are both investments that are traded on an exchange and can be bought and sold on a market.


There are many different strategies to consider when investing when you have the capital, but you simply need to find one that allows you to make the most money with your investment, allowing you to earn more interest (calculated monthly) while you are waiting for your investment to mature.


Remember, you must invest in small amounts in bonds as opposed to stocks, stocks can have a high risk but can also be high growth. In addition, if you invest in a large stock, it may be subject to the market volatility and you may lose your principal amount. If you are looking for high growth potential, large stocks tend to do well, however, you may not earn high rates of interest.


Remember, high growth investments may not pay you high rates of interest, however, they are able to earn you high rates of interest that can compound from month to month, year to year and there are no taxes upon retirement. High growth investments will, allow you to keep your principal amount, while investing in stocks, stocks have high risk (they can lose value), but will also accumulate upon retirement.


How do you get from zero to retirement faster


Once you decide where to invest your money, you can then start choosing your investment. There are many different ideas, strategies, and vehicles to choose from. The main thing is to pick one that will allow you to make money on a monthly basis, which can help you to gain high rates of interest (calculated monthly) which can help you to gain more money. You must pick a business that you are comfortable with, and will allow you to enjoy the business. Avoid businesses that may be unprofitable, and that may not be lucrative.


Once you have chosen the business or investment, you must then determine how much money you will need to retire. First determine the amount of money you will need, simply find a retirement calculator to determine how much you will need to retire based on your income and your expenses. The most accurate calculator will be one that calculates how much you would have if you sold your current assets and paid off your debts, and used that money to pay for your retirement.


Remember, in today's economy, you must start saving and investing now if you don't want to have problems when you retire.


How to invest wisely to make money on a monthly basis


Once you have determined how much you will need to retire, you can now invest your money wisely to make money. You must then choose the types of businesses or investments that you will invest your money in. You must choose a business that has low risk, high return, that will allow you to gain high monthly rates of interest, and will allow you to grow your money. Remember, investing in businesses that require high initial investment amounts will have high rates of interest, but will also be very risky. High risk usually means high rates of interest.





Some common businesses that you should choose are, stocks, bonds, mutual funds, and real estate. There are many different types of business that you should choose, and you must analyze the benefits of each business or investment. Remember, you must choose what is right for you and your situation.

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