Corporate Debt

Investing in bonds is very safe, and the returns are usually very good. You can purchase Treasury Bonds with maturity dates ranging from three months to thirty years. Treasury bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. A corporate bond is essentially a firm selling its debt. Corporate bonds usually have high interest rates, but they are a bit risky. If the corporation goes belly-up, the bond is worthless. State and local Governments also sell bonds. Purchasing foreign bonds is actually very difficult, and is often done as part of a mutual fund. For best results, when a bond reaches maturity, reinvest it into another bond.

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