Swapnil Rege Explains the Benefits of Treasury Bonds

Swapnil Rege is a financial trader and investment portfolio manager. Rege started out in the IT field, and working on Citigroup’s trading software brought him into contact with the financial world. Rege gained an interest in investments and trading through his work at Citigroup, finding his true calling.

As Rege worked in the financial field, he accumulated rare insights and expertise that helped him create solid investment strategies for his clients. His investment and financial advice can be helpful for the people of Jamaica, New York. Rege has explored the advantages of investing in Treasury bonds and shares his experience with Patch readers.

Explaining Treasury Bonds

A U.S. Treasury bond (T-bond) is an investment sold by the federal government. The government uses these bonds to fund its daily operations. The bonds operate on a 30-year maturity schedule. If money is withdrawn early, the investor may owe fees and penalties. Treasury bonds should not be confused with Treasury bills or T-bills. T-bills have much shorter terms.

They Never Lose Value

As long as you keep your bond for the 30-year term, it never loses value. The federal government backs your investment in these bonds. The low risk involved in this investment means that it is a perfect complement to higher-risk investments in your portfolio.

Guaranteed Rate of Return

When you receive your Treasury bond, you will be given the rate of return (interest) in addition to the principal amount upon the bond’s maturity date (end of bond’s term). Unless you cash this bond in too early, that is exactly what you will receive from the government at the end of the term. There will be no guesswork when it comes to calculating your return from these bonds.

Competitive Interest Rates

Interest rates on T-bonds have hovered at about 4% in the past few years. A 4% return rate is not outstanding compared to other forms of investment, but a guaranteed 4% makes sense when combined with more risky investments.

Regular Interest Disbursements

Interest is received every six months. In addition, these interest payments are exempt from state and local income tax. This is an advantage over similar types of bonds that are not sold by the U.S. government.

Excellent Investments for Retirement

T-bonds make an excellent part of a retirement portfolio for residents of Jamaica. As people approach retirement, they should move their assets into less risky portfolios. These bonds’ long-term fixed return means that they are a solid and low-risk choice for the average investor.

No Maintenance Fees

If you buy these bonds directly from TreasuryDirect.gov, you will be exempt from maintenance fees. This may seem like a small amount of money, but maintenance fees add up when combining all of your sources of investment income.

Easy to Buy

Since there are so many T-bonds on the market, it is easy to find and buy them. They can be bought directly from the government, as above, or they can be bought from other investors in any quantity you wish.

Stabilize Your Portfolio

T-bonds provide the average investor, especially the investor saving toward retirement, with a unique and valuable asset. The fixed rate of return on these bonds makes it possible to invest without the anxiety of exposing your money to the larger market. While these bonds do involve some level of risk, mainly the possibility that Fed interest rates will rise or fall, they are solid investments to include in your portfolio.

Swapnil Rege’s background in the financial services sector gives his words more weight in this volatile economy. Following Rege’s guidelines will help you achieve greater financial stability and independence.