US Savings Bonds

Posts Tagged ‘us savings bond advantages and disadvantages’

Question: What are the advantages and disadvantages of the following forms of investing:?

A.) Common Stocks
B.) Mutual Funds
C.) Life Insurance
D.) CD (Certificate of Deposit)
E.) Savings account or US Savings Bond

Answer: With the exception of life insurance, the common denominator with the others is different degrees of risk. E has the least risk, it has a safe return, its insured, and its liquid. CD’s are not so liquid and you have to pay a penalty (which is tax deductible) for early withdrawals. Common stocks carry the most risk. Life insurance isnt an investment. If you need insurance buy insurance. If you want an investment, invest in a security.

Davos Open Forum 2010 – After the Financial Crisis: Consequences and Lessons Learned