Diversification, income, and tax savings are just a few of the reasons why bonds are an essential part of a balanced portfolio. But which is right for you? The experts at R. Seelaus & Company can help. We work with the investment needs of each our clients. Whether there is a need for taxable or tax-exempt income, we can find the right product for every investor. Our team of analysts has developed a comprehensive understanding of every credit we follow and the associated risks of all the bonds we trade.
Whether you are planning your retirement or thinking about your children’s education, you will need guidance and sound investment advice to build wealth. At R. Seelaus & Company, we take great pride in the individual service we provide each of our clients. We carefully examine your current finances, develop the timelines necessary to achieve your goals, and calculate the risk you are willing to tolerate. This is why so many individual investors place their trust in us.
U.S. Government Bonds
Also commonly referred to as U.S. Treasury Bonds or simply Treasuries, U.S. Government Bonds are debt obligations issued by the U.S. Department of the Treasury and help finance the U.S. Government. The four types of U.S. Treasuries are Treasury bonds, Treasury notes, Treasury bills, and Treasury Inflation-Protected Securities (TIPS). A Treasury's classification as one of these four types depends on a number of criteria including coupon and maturity date. U.S. Treasuries are extremely liquid and are, as such, traded in heavy volumes.
U.S. Agency Bonds
U.S. Government Agencies, such a Government National Mortgage Association (Ginnie Mae), or Government Sponsored Entities (GSE), such as Federal National Mortgage Agency (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), also issue debt to raise capital. These securities offer higher returns than U.S. Treasuries and can be purchased with various coupons and maturities to suit every investor’s need.
Corporate Bonds are debt securities issued by major American corporations such as IBM and Proctor and Gamble. These bonds can be either secured (such as a mortgage on equipment) or debentures (promise of the corporation to repay the money). In today’s changeable/changing corporate atmosphere/environment there are opportunities for every type of investor. Contact us today for the latest in US Airline Bonds and automotive securities (GM, Ford).
Municipal Bonds are debt obligations issued by states, cities, counties and other governmental entities to raise money to fund public projects. These include the building of schools, bridges, highways, hospital, sewers and many other initiatives.When you purchase a municipal bond you are lending money to an issuer who promises to pay you a specified amount of interest (usually paid semiannually) and return the principal to you on a specific maturity date.
Collateralized Mortgage Obligations
Collateralized Mortgage Obligations (CMO’s) also known as Real Estate Mortgage Investment Conduits (REMIC’s) are one of the most innovative investment vehicles available today offering regular payments, relative safety and notable yield advantages over other fixed income securities of comparable credit quality.
When you are considering investing your money in a company's stock, consider the following: Do you understand the company's primary business? Is the management comprised of people that you trust? Have you thought about where the company will be in five years? How does it stack up relative to the competition? Can it protect itself against new competitors? Is there a downside? If so, what is its potential magnitude and how likely is it to occur?
Whether you are looking for a 30,000-foot viewpoint or in-depth research on a specific company or sector, the professionals at R. Seelaus will work with you and offer their seasoned opinions and analysis of your portfolio in order to help guide your investment decisions.
The key advantages of investing in a mutual fund are diversification and active professional management. A Mutual Fund may invest its shareholder's money in stocks, bonds, other securities in a variety of combinations. The combined holdings are known as the fund’s “portfolio” and are designed to achieve a specific investment objective such as long-term growth or current income. Many funds allow an initial investment as low as $250-$1,000 and can provide convenient reinvestment of dividends and capital gains. American investors have increasingly turned to mutual funds to save for retirement.
Exchange Traded Funds (ETFs)
ETFs are similar to mutual funds as they can also be invested in a myriad combination of securities and thereby also offer diversification. Two of the key differences are lower fees and manner of trade. Most ETFs are designed to track an index like the S&P 500 or the Dow, which means it is attempting to meet or exceed the performance of the index it is “tracking.” ETFs can also be designed to focus on a specific subsector of an index like Energy or Healthcare. This single focus requires much less active management which in turn lowers the fees associated with investment. Additionally, ETFs trade similarly to stocks in that they have intraday price fluctuations and usually do not require a minimum investment. If an investor is looking for broad, inexpensive exposure to a market index or a particular market sector, an ETF may be the right investment choice.
However, there are positives and negatives to all investments and you should work with your Financial Advisor to research and select the Mutual Fund or ETF that will help meet your objectives.
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