More and more investors are becoming hypersensitive about asset protection, Ted Bauman says , the guru behind the Sovereign Investor and Plan B Club. And with the stock market taking several nose dives lately, Bauman points out investors should be looking for defensive measures, like safe bonds.
Why Invest In Bonds?
When you buy bonds you are lending money. The shortest and safest securities in the world are US Treasury bills. This type of investment won’t make you rich, but it’s safe, convenient, and holds very little risk, and as Ted Bauman points out, investors must always spread their risk so all their eggs are not in the same basket.A bond is a promissory note issued by an institution and it has conditions. It has a price, an interest rate, and a maturity date. To obtain money, the institution issues notes with an interest rate, that must be paid back, according to what the promissory note states. But Ted Bauman also warns, there are parameters to consider when investing in bonds.
Some parameters to consider include the ratings to access reliability, fixed or variable interest rates, the duration, the yield, and the currency of the bond. Bonds have always been considered one of the most solid instruments for those who want to invest, however, in any investment, you should assess the risk profile.For over 20 years, Ted Bauman offering advice and simple strategies to maximize wealth. A graduate of the University of Cape Town with a degree in Economics, and an MBA from Georgia State University, Bauman has worked domestically and internationally, including consulting for the United Nations.
Since 2013, he’s been an editor for Banyan Hill Publishing, advising investors with The Bauman Letter. According to interviews, Bauman points out the importance of putting investors in touch with resources with low-investment risks, and that have little to no government oversight. No fan of government regulation, Bauman says he’e enjoying helping investors find long-term benefits that offer good financial strategies, and as editor of The Bauman Letter, and the Plan B Club he gets to inform everyone about the art and science of investing.