We last spoke about JP Morgan and how he lent money to bail out the U.S. government. Did you know that you can do the same thing too?
When you buy a U.S. Treasury bond that’s exactly what you’re doing. You are making a loan to the U.S. government and in return they will pay you a fixed amount back called interest.
But you are not limited to just U.S. Treasury bonds, there are corporate bonds and local municipal bonds as well.
You even have barer bonds like the ones John McClane was chasing at the Nakatomi Towers.
Depending on the type of bond you purchase, the interest returns may be tax free.
Usually when there is economic turmoil in the U.S. stock market, the smart money rushes to buy gold and U.S. bonds.
The U.S. bond is considered the safest investment in the world.
Why?
Because the U.S. bond is backed by the full faith and credit of the largest economy in the history of the world. The United States!
But that faith in the U.S. economy now sits on shaky ground so the bond market is not thought to be as reliable as it used to be.
-Monk
We spend 12 – 20 years in school learning about every subject, except for money. Then we spend the rest of our lives trying to figure out how to make money or how to grow the money we have.
My approach to financial literacy is to teach it in a way that makes the complexities of finance so simple that your investing actions become instinctive.
To the youth, young adults, and the mothers who raise them,
Financial Literacy: Monk Says… Learn the Game
#FinancialLiteracy
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