Answered produced feed
D 5 · C 5 · P 5 · Cm 5 5.00
Q Well, can you start it with lowest risk investments? Because I think, at least for my age group, there's so much focus on the equity markets and single name stocks, but people don't realize actually like the bond market is bigger than the stock market, but it's just covered in a different manner. So can you start with the lowest risk investment?
A So the stock market has like 10,000 issues. The bond market has nine million individual CUSIPs. It's huge. And that includes issuers like The federal government of the United States. Treasury bonds. That would be your lowest risk investment because it's backed by the good faith and credit of the U.S. government. No different than the currency is, except it pays interest. And when you buy a bond, what no one realizes, you're just lending the money to the government, and at maturity, you expect to get that money back. Bonds are, you're given, uh, at a thousand dollar increment, and the interest is paid semi-annually, spoken of annually, and that's the long and short of owning Treasury bonds. And then from there, you could scale up on the risk, but that's what people consider risk-free investing. But of course, there is no such thing as risk-free.
AI assessment note: “Treasury bonds. That would be your lowest risk investment”
Answered produced feed
D 5 · C 5 · P 5 · Cm 4 4.85
Q in the coming years, and I'm always thinking about what does it actually look like to be setting up Your family or specifically your kids for a life of financial freedom. So for a listener like myself, who is looking to do the right thing for their future kids, how can I start investing for my kids today? Or how can someone do it when they've just had a child?
A So there are plenty of account types that are tax advantaged for investing for miners, like UGMA accounts, five 29. So a UGMA account stands for unified gift to miners account, where you're putting in investments and those can grow tax deferred, and eventually, once those funds are used, then you're paying the taxes on the way out, or a five 29 account, which you set up through any of the states, and You're putting those funds in specifically for college. It's for higher education. But what I did for my kids, I actually did zero coupon muni bonds in my taxable account. Now, I'll break that down. So, muni bonds, to start with, those are bonds issued by a state of municipality, and you can buy them, and they're tax-free in the state you live in, in one of the regions of the United States, like D.C., Guam, U.S. Virgin Islands, Samoa. So there's all these different ways to grow those Tax free in your taxable account. And the other reason I did that was the idea of having zero coupon. Zero coupon means I'm collecting no interest. So I'm thinking about the dates when I'm going to have maturity are going to fall, hopefully, just when all the tuition is due. And I'll have a lump sum ready for that date. Now, of course, there's no perfect investment. Like, I don't know exactly what the tuition will be. I don't know if my kids will go. But that's okay. One of my kids, I have four kids. O…
AI assessment note: “there are plenty of account types that are tax advantaged for investing for miners”
