Most people, especially new investors, often ask about the best way to invest money. Bear in mind that there are many ways to invest money and the best way to invest money for one investor is not necessarily the best way to invest money for another. Each investment has risks and rewards.
General obligation bonds are common municipal bonds. General obligation bonds are sometimes called general obligation issues or GOs. Many investors invest in general obligation bonds without even knowing that they are general obligation bonds or general obligation issues.
A way to invest money, especially when your home market is doing bad compared to the international markets, is to invest in international investments. However, many investors stay away from international investing even though sometimes, it is the best way to invest money.
International investments or international stocks have often outperformed U.S. investments and US stocks. However, most US investors shy away from international investments because they believe the international investments are more risky than US investments. Some investors believe that international investments are too risky and/or don't perform as well as domestic stocks.
Buying foreclosed homes to improve upon has been a hot trend in real estate investment. There are now thousands of books and even websites dedicated to finding such foreclosed homes for you to buy at foreclosure auctions or Trustee's sales.
Individual retirement accounts or IRAs are retirement accounts that offer great tax benefits for investors saving for retirement. All investments in IRA accounts grow tax deferred or tax free. That means, you can buy and sell any investments in your IRA account as often as you like and you won't have to pay any capital gains taxes on the gains.
The municipal bond market is one of the largest bond markets in the world. Today, more than 5 million households own municipal bonds. Many investors think that the best way to invest money is to buy municipal bonds. The widespread appeal of investing tax free with municipal bonds is primarily due to their steady stream of income that is exempt from federal income taxes, and in some cases state and local income taxes too.
What is market discount of municipal bonds? Market discount on municipal bonds or any tax exempt bonds can arise if the municipal bonds are issued at par or at a premium and is later purchased in the secondary market at a price that is less than par.
When buying municipal bonds, it is important to look at the municipal bond ratings chart and even more importantly you need to understand the meaning of ratings of municipal bonds. The two major municipal bond rating agencies are Moody's and S&P. See Moody's Ratings and S&P Ratings for municipal bonds for different ratings compared.
Below is the Municipal Bond ratings table which shows Moody's ratings and S&P ratings for municipal bonds. Moody's municipal bond ratings range from Aaa which is the best of quality to Baa which represents medium grade municipal bonds. S&P municipal bond ratings range from AAA which is the best to BBB.