U.S. Treasury Bonds Offers Risk-Free Investing Benefits

Anyone can invest. A true investor invests with a keen eye on returns. To make fruitful investments, you must understand how the financial market works. You have to know what you’re investing in, whether it be a stock or a company, and understand why it will grow in value. Investing is no child’s game. In fact, it isn’t a game at all. If you don’t know what you are doing, or, are prone to hype and panic decision-making, then it can be very easy to lose all of your money.

Most Americans are living with extremely fixed-budgets and fixed incomes as well. It seems that everyone is perfecting ways to stretch a dollar nowadays.  So, what that mean for people who want to invest? Finding financial security in life comes not only from saving money but in also making strategic, long-term investments. Unfortunately for most people, they can either do one or the other, but not both.

And sometimes, neither. Some Americans are only a few hundred dollars away from financial problems. Almost 30% of Americans would be hard pressed to come up with $400 if they were confronted with an imminent financial emergency. Most Americans are only financially, “okay,” enough to deal with any imminent emergencies. The point is that investing may be a luxury for some people, even if it is something they truly want to do.

There is one financial investment that is basically guaranteed to be a safe investment. Investing in U.S. Treasury bonds.

Treasury Bond Basics

Investing in U.S. Treasury bonds are considered to be one of the safest investments that you can make. When you buy a U.S. Treasury bond, you are loaning the American government money to help it make ends meet on the federal level. Unless you hear that the United States has run of money or is no longer a sovereign nation, things that won’t happen anytime soon, then repayment of your loan is a virtual guarantee.

U.S. Treasury bonds are backed with the confidence of the United States government and the Department of the Treasury. The United States government has the ability to levy taxes and print money. So, your investment, or loan, is guaranteed to be repaid. You can buy U.S. Treasury bonds in 10-year, 20-year, and 30-year maturity terms.
“Maturity,” is a financial term referencing the length of time that interest is generated.

Interest generation on a Treasury bond is also known as the, “coupon rate.” For example, a 20-year U.S. Treasury bond pays 2.34% interest. This fixed-rate of interest is added to Treasury bonds every six months for the life of the bond. So, if you hold onto a Treasury bond for 10, 20, or 30 years, then you can redeem the cash value along with the interest generated.

Some may criticize the modest interest rates. However, you have more of a guaranteed to cash out interest on Treasury bonds than you may have had in investing during the cryptocurrency peak. Or, investing in similar hype investments. As long as the United States government stays in business, then you will assuredly receive returns on top of your investment.

A Virtually Guaranteed Long-Term Investment

To learn more about U.S. Treasury bonds, just check out Treasurydirect.gov. U.S. Treasury bonds ca be bought directly from this site via auction every February, May, August, and November. Reopening auctions that feature reissuing of existing bonds occur all other months. The minimum face value of a U.S. Treasury bond is $1,000, but you can bid on them in $100 increments.

Sounds complicated? It really isn’t. You can learn about bidding on U.S. Treasury bonds here. Investing in U.S. Treasury bonds isn’t hard, expensive to do, is guaranteed to generate returns, and is a great way to invest safely.

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