Invest in a 40yr. security. security pays $25 a yr. at the end of each 1st 3yrs.?
Answer:
That sounds like a real -world situation (not).
You need to do your own homework.
i think you should invest in T-bills at 9.55% or 24 month CDs and roll them over at maturity.that security wont pay enough if your looking to retire.also who knows if that particular security will go bankrupt? there are many ways to invest monies so you can retire early and mutual funds are the way to go.besides you didnt say how many of these securities you were going to invest in.if you buy only 1 you might have enough to buy your food for years.you might collect roughly 300,000k -450,000k in 40 years but thats a very long time and the interest rate can go down. i based my answer on 8% but it would be less when taxes are assessed on your investment. uncle sam has to get his cut and thats about 40% so 40% of 400,000 is 160,000 leaving you with 240,000k. i would invest in something other than a security they are a big gamble. cds and mutual funds are solid. T-bills can go up and down but not very much.ive seen then at almost 10% and i think they are at 9.55%. if your going to purchase the security buy 10 every 3 months until you have 100 then you can relax and wait until they mature.another is savings bonds.buy 5 25 dollar bonds every month for 15 years.they cost 18 dollars or 50 dollar at 43 dollars.also if your under 25 you have an obligation to yourself because social security will not last too much longer.i think the federal reserve said 10-15 years.
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