Junk bonds, also known as high-yield bonds, are corporate bonds that are rated below investment grade by credit rating agencies. This means that they are considered to have a higher risk of default than investment-grade bonds, which are rated as safer investments.
Tag: investing
The Power Of Compound Interest
Compound interest is a powerful concept in finance that allows your money to grow exponentially over time. Essentially, compound interest is interest that is calculated on the initial principal balance as well as on any accumulated interest from previous periods. This means that as your savings grow, your interest earnings also grow, which can result in significant gains over time.
Investing on a Shoestring Budget
Investing remains one of the best ways to grow money. But when you’re living paycheck to paycheck, how do you start? The truth is, you don’t need a lot of money to start. Investing on a shoestring budget is entirely possible. Still, it’s important to eliminate as much debt as possible before you start. For example, if you’re paying out 10% in interest to a credit card company and only bringing in 6% on an investment, your wealth will shrink. Once you’ve eliminated those obligations, here are a few easy ways to start an investment journey.
Are You Ready To Take On Alternative Investments?
With may feeling unease at the ups and downs of the market, some investors are seeking the exit. Instead, some savvy investors are finding a diversified haven via alternative investments.
End-of-Year Checklist: 4 Important Financial Tasks To Complete
The end of the year isn’t only a time to make resolutions for the 12 months ahead. It can also be a good marker for finishing up some financial tasks and putting things in order. In fact, if you let some of these checklist items go until after the clock strikes 12 on December 31, you could be throwing away money. Here are four tasks to put on your to-do calendar.