when you invest in bonds, you can’t earn more (or) make big money through bonds. for the reason once you have any types of bonds. the bond rates are lower than real estate and stock investing.
so, some of them ask, how can people make big money through bonds?
well, here I clarify for you. once you’re already rich. and you don’t know where to put money. so you decide to buy the bond, which the bond is worth 1 million dollars. and it gives you annually 4% to 7%.
then you can easily make 40,000 dollars to 70,000 dollars per year. but once you’re middle class (or) poor class. then you can not make any type of big money through bonds.
let’s say you have a 1000-dollar bond with a 7% interest rate. you make 70 dollars per year. which is very very lower than your monthly income. you can not become rich or financially free by investing in bonds.
suppose, even when you invest compounded in bonds it takes 10 years to double your single $1000 to $2000. which is one decade. it taking a long time.
secret to invest in bonds
smart people always do smarter things than normal people. rich people are not smart. most of the rich people buy bonds. but 90% of them didn’t make the most and maximum amount of money from it.
for the reason, that they have high knowledge of bonds when comparing common people who buy bonds. the smart and knowledgeable person always buys bonds for less than their worth.
let me clarify for you, once you buy a thousand-dollar bond for 500$ dollars with a 7% interest rate. then you make a 15% return every year. but other people only make a 7% return. once you buy the bond much more less than 500$ of 1000$ worth of bonds. then you can make more than 15% return every year.
the bond investor who buys a bond less than its value. they make the most and maximum amount of money from it. so buy the bond, how long you can buy
if your bond is more worth it and you buy it at a very low price? then your returns will be very high. otherwise, you can not make any big returns and more money from bonds.
when you have to buy bonds.
on the other hand, you can not buy bonds less than their value at any time. this type of opportunity doesn’t come often. so wait for the opportunity and search more for your expected bonds to buy at much less than their value.
take your decision now.
if you have very little money to invest, then it is a good decision to invest in bonds to make extra income from it. but you can’t become rich quickly. it may take more decades to use bonds to become rich and financially free in your life.
so if you’re a person who is thinking of investing in bonds and trying to make extra income from it. then buy and make from it. otherwise don’t buy, learn what are the better ways to invest money other than bonds such as business, real estate, stock market extra….
Warren Buffet likes to buy bonds. he buys bonds. I teach here, what if Warren Buffet buys bonds on his own? these strategies and rationality are always used by Warren Buffet. if you used the same thing. you can become more successful in the long run.
finally, the person who still has any more doubt about it. then feel free to ask your question through contact or suggestions below the comments. I am here to help you.