Now imagine getting a loan for 1mil and putting it straight in a bond.Give da bank back the Million and interest.You keep the change and put a down payment on 3 houses.Than put those 3 houses as collateral for 3-4 million and repeat
Might not be so bad if you weren't expecting the government to print a trillion dollars a quarter to contribute to inflation and your loses holding there unaccountable mismanagement of that system.
3:33 so why did the investor go for the 5% interest assuming both the bonds are at the same value. I thought higher interest rates would lower the value of the bond in the future?. Shouldn’t he have stayed on the 2% first?
Hello, we appreciate that you reached out! Please send us a private/direct message for additional direction. You can contact us at 1-800-435-4000, or log in to Schwab.com to initiate a secure chat for assistance. Representatives are available 24/7. Thank you! ^CH
it seems the premise is: if you had the option to take the 5% return vs the 2% return on your principal of $1000 - you would take the 5% return if all things are held constant. you would not seek a bond that pays 2% if the highest being offered is 5% currently.
Thank you for reaching out! I am happy to direct you to our service teams for assistance. You can reach a specialist directly by phone using 800-435-4000. ^CH
"To default" means not being able to pay. If that happens, you could lose your money. For example, when Greece defaulted, investors only got back 50% of their money.
@@AffectionateFrog-zd2rpinvesting from 17 means that compound interest will be great if you start now and keep investing as you get older. I’m 41, and being 17 doesn’t seem so long ago! Investments - you need to open an ISA in an online investment platform. May need to be 18. All interest and dividends in your ISA account are tax free. The proven investments over time are in indexes, which take the largest companies in a country, or area, like tech. Because the US has strong and innovative companies, the S&P 500 has historically returned around 8%. I also invest in Legal and General’s global tech fund, because the strength of tech companies in the S&P is high. However, they and the S&P 500 have seen masses of growth and are now trading at historically high ratios of price of companies to company earnings. So bonds may do better over the next few years. No one really knows though! The best time to invest is when the market falls.
I mean who the fuck does this if they get better interest rate by just leaving the cash in a savings account😂 I can see a multimillionaire, and a billionaire, doing it fine but a average guy with $250,000 in savings won’t usually consider these as worthy investments 😂😂
The Fed just cut rates by 50 basis points, so expect your bank to send you an email introducing your new (lowered) savings rate -- if it hasn't done so already.
This lady has the perfect voice for this.
Thank you for bringing this back. It's very useful.
A very good introduction of bonds
Knowledge supports growth.
you & i will both be very wealthy in the future
very useful,thanks for your content, it helps me in my school subjects very much !
Glad to hear that! ^CH
2% interest, that investor got hosed!
I don't know much about bonds but someone in my family is sending me a bond of $35000 USD with 4% interest (semi-annually). Is this good?
@@ALeaud Yess, that's a really good investment.
@@ALeauddepends on if it’s a corporate bond (high risk) or government bond (low risk).
@@stefandomeier1911 It's a corporate bond from Toyota in Japan.
it's a low interest rate i think
So cool! It's really good explained ❤
Short and to the point !
Wonderful video! Thank u so much for sharing a informative & helpful video with us.
Great explanation, love this!
ing your knowledge with us. You're a true inspiration!arI can't thank you enough for sha
my man got scammed. 200 for 10 years 💀
Now imagine getting a loan for 1mil and putting it straight in a bond.Give da bank back the Million and interest.You keep the change and put a down payment on 3 houses.Than put those 3 houses as collateral for 3-4 million and repeat
@@MOthePYROI’m confused
@@MOthePYROhow are you gonna pay the bank 1 million if you if you gave them the million
@@MOthePYROthe bank will have to be paid interest on the million
@@MOthePYRO a true financial genius
Unreal explanation
Viewed. Thanks.
Excellent!
Thank you so much!!! 😊😊😊😊
Might not be so bad if you weren't expecting the government to print a trillion dollars a quarter to contribute to inflation and your loses holding there unaccountable mismanagement of that system.
3:33 so why did the investor go for the 5% interest assuming both the bonds are at the same value. I thought higher interest rates would lower the value of the bond in the future?. Shouldn’t he have stayed on the 2% first?
Hello, we appreciate that you reached out! Please send us a private/direct message for additional direction. You can contact us at 1-800-435-4000, or log in to Schwab.com to initiate a secure chat for assistance. Representatives are available 24/7. Thank you! ^CH
I've been thinking the same
it seems the premise is: if you had the option to take the 5% return vs the 2% return on your principal of $1000 - you would take the 5% return if all things are held constant. you would not seek a bond that pays 2% if the highest being offered is 5% currently.
Bonds are a little bit complex concept to use in practice
So "interest risk" is really just an opportunity cost and not an actual loss?
Until realized. ^BW
0:00-3:18
Please, Can anyone explain the default risk, I couldn’t understand it.
Thank you for reaching out! I am happy to direct you to our service teams for assistance. You can reach a specialist directly by phone using 800-435-4000. ^CH
"To default" means not being able to pay. If that happens, you could lose your money.
For example, when Greece defaulted, investors only got back 50% of their money.
basically the issuer failed to pay back the money they owe to bond investors due to insolvency and etc
The company you are loaning to running out of money before they pay you
💕
WHERE was this in school?
At least you are learning it now. Good job. ^CH
@@CharlesSchwab Understood, but preferably I’d like to be aware of these investments between the ages of 18-21 to have a head start.
Stocks and bonds are great investments I made a fortune
Any tips for beginning stock investors? I’m only 17 and I’ve been rigorously researching investment options for the future, both short and long term.
@@AffectionateFrog-zd2rp make sure to have liquidity still if you are considering investing in bonds
@@AffectionateFrog-zd2rpinvesting from 17 means that compound interest will be great if you start now and keep investing as you get older. I’m 41, and being 17 doesn’t seem so long ago! Investments - you need to open an ISA in an online investment platform. May need to be 18. All interest and dividends in your ISA account are tax free. The proven investments over time are in indexes, which take the largest companies in a country, or area, like tech. Because the US has strong and innovative companies, the S&P 500 has historically returned around 8%. I also invest in Legal and General’s global tech fund, because the strength of tech companies in the S&P is high. However, they and the S&P 500 have seen masses of growth and are now trading at historically high ratios of price of companies to company earnings. So bonds may do better over the next few years. No one really knows though! The best time to invest is when the market falls.
WOW! 2 % where do I send my money?
how did they change the vioce in these videos from what sounded like a caucasian American male to now it sounds like a Black American female
How many do you have
is much magic the btc is go moon so I buy the many coins and the btc is moon soon then melt face
Minimun bond purchase in Schwab is $1.0M what a joke!
Incorrect
You don't have 1M? Get good.
@@dvazquez2016
Skill issue, amirite
Huh?
Invest in yourself before you invest in bonds.
What a roast!! 😅
I mean who the fuck does this if they get better interest rate by just leaving the cash in a savings account😂 I can see a multimillionaire, and a billionaire, doing it fine but a average guy with $250,000 in savings won’t usually consider these as worthy investments 😂😂
The Fed just cut rates by 50 basis points, so expect your bank to send you an email introducing your new (lowered) savings rate -- if it hasn't done so already.