How to Buy Bonds in the U.S.

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Buy bonds in the U.S. directly through the treasury department or by investing in bond mutual funds through a discount broker or financial adviser. Consider buying treasury direct investment bonds to prevent losing money with insight from a financial planner in this free video on investments.

Part of the Video Series: Investment Facts
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Video Transcript

Hi, there. I'm Cathy Pareto, the founder of Cathy Pareto and Associates, certified financial planner, here in Miami, Florida. In this clip, we're going to be talking about how to buy bonds in the United States. There are many ways that you can access bond investments, whether that's directly with the Treasury itself through www.treasurydirect.gov. You can actually buy them directly from the government, and they are custodied in an account for your behalf. Or you can acquire bonds individually through a discount broker or your financial adviser or stockbroker, or even through bond mutual funds or bond exchange traded funds. Now, a consideration when acquiring these bonds is you might want to look for bonds that are of high credit quality. You don't want to find yourself unhappily surprised to learn that the company that you bought them from -- if it's a corporate issuance -- went bankrupt because then you'd have to stand in line with the other creditors. So if you're going to explore buying bonds, I might urge you to consider either buying Treasury direct investments, whether it's T-bills or, you know, five-year notes, or buying bonds through a bond fund where you can buy hundreds of bond issuances at once, whether it's government issuance or corporate or even international global or corporate. It's just a way to diversify your portfolio a little better. So that's a little bit about how to buy bonds in the U.S., and this has been Cathy Pareto in Miami, Florida.

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