Friday, March 13, 2015

The Rich Get Richer with Bond Investing

Sold some CWT bond yesterday $100.35, 4.75% yield, maturity in March 2020. Min 250k,

the client ask: Am i getting $11,875 every year?

I say: Yes! they pay you half yearly, and you get $11, 875 in a year, $59,375 for 5 years. You will be 24% richer in 2020!

Now I know why rich people get richer,
1) There is people constantly helping them looking for opportunity
2) They buy assets that generate CASHFLOW
3) They always have bank that is willing to give them a lower interest loan and in big sum amount
4) They take calculated Risk, not gambling into penny stocks
5) They look into the Future and invest in a longer term.