bonds

Personal Investments

When the new entrepreneurs are reunited they always begin to complain because they think that aren’t making enough on their personal investments, because everybody listened once: if you want to make more money, you need to take more risks; and obviously this is scary. But there is a way to make successful personal investment without increasing the risk.

It’s important to explain that investing is not like a “get rich quick magic formula”. Instead, it is about taking control of your own finances and doing this will take some work and time, and also a learning stage before you can start. [Read more…]

Trust Fund

by Kylee Sanders

A trust fund is basically a fund comprising of any kind of assets which are intended to provide benefits to one individual or an organization. It is formed so that the money from one person can be passed on to another person or organisation and still be useful after the death of the person who created that trust fund.

A trust fund is basically a fund comprising of any kind of assets which are intended to provide benefits to one individual or an organization.

A grantor creates a trust fund to collect assets for the befit of an individual such as a child or grandchild or people even create trust funds for organisations like charitable organisations and non-profit organisations.

The assets can range from cash, stocks, bonds, marketable securities or any other type of asset which can be built over the course of years. Typically, the recipient of the trust fund must wait till a certain or a specific turn of events to be able get the benefits from the assets of the trust fund. And before the time that the assets are available to be used by the recipient, a trust fund is managed by a trustee or a group of trustees, who mayor not be the same as grantor.

A grantor builds up the assets whereas a trustee manages them. The agreements with the trustees can vary. They can as simple as being just a dispenser of assets to the beneficiary or even complex like being able to make investment decisions for the beneficiary. It is often regarded that trust funds can only be created by wealthy people, but actually a person of any means can set it up for protecting the funds from being potentially misused and even to get tax benefits.

The money can be used by your children for educational expenses and you decide where your money can be spent after you pass away. The amount which you give to be forming a trust fund will be exempted from taxes, and this also means that you will not be able to use that money because now it does not belong to you. The legal documents pertaining to the creation of trust funds are quite complex, so it is advisable that you take up the advice of an attorney or your financial adviser for a proper trust fund to be formed.

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Municipal Bonds

by Ryan Kendall

Issued by local governments or their corresponding agencies, municipal bonds are debt obligations for public projects including the construction of schools, parks and more. Generally they are federally tax exempt and have a lower level risk of default when compared to other bond types. Still make sure you read up on the risks associated with such bonds before you go ahead and make a purchase.

Issued by local governments or their corresponding agencies, municipal bonds are debt obligations for public projects including the construction of schools, parks and more.

Municipal bonds general come in two types- general obligation bonds and revenue bonds. How do these differ? The issuers of revenue bonds are typically non-profit organizations and private sector corporations while general obligation bonds are issued by governmental entities. Depending on the infrastructure needs of the municipality, these types of bonds are issued as a sort of financial security. So why would anyone want to purchase a municipal bond?

These sorts of bonds are a great investment for individuals looking to investment in something that provides a tax advantaged income. But they may not be for everyone. Investing in municipal bonds makes most sense for those in the high 25 percent federal tax bracket or more. These bonds tend to be very expensive whether individual or mutual even when purchased from discount brokers. Furthermore, doing the research to see which bonds have the most success is necessary when shopping around. You never know when a banking meltdown or some other sort of financial catastrophe could occur and often in some types of municipal bonds, you may not get your money back.

7Going back, the purchase of these bonds is like an investment in public infrastructures such as highways, water managements, schools and so much more. So when you purchase one of the various types of municipal bonds it is like you are lending money to the local government or state and in turn are given a promise to be repaid back the interest and principal once it reaches maturity. But make sure you read between the lines because some forms of these bonds can be taxable when it comes to certain issues such as public facilities that are not necessarily supported by the federal government. So while municipal bonds, also known as Munis, are a great investment for those who can afford them and are looking for a way to gain return while also investing in local and public infrastructures, taking the time to research which one is best for you is imperative.