Sentences with phrase «bond income payments»

Reinvestment risk — the risk that you will not be able to reinvest the periodic bond income payments and returned principal at maturity at the same rate you are currently receiving from the bond.

Many analysts say that those rising bond income payments could offset the gradual decline in bond prices enough to produce positive — albeit modest — total returns.

Not exact matches

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

(The bonds that funds own each carry the risk of default if the issuer is unable to make further income or principal payments.)

• 1/2 of self - employment tax (self - employed individuals are required to pay «payroll» taxes that an employer would otherwise take; these extra taxes can be deducted from AGI, but are included in MAGI) • Student loan interest • Tuition and fees deduction • Qualified tuition expenses • Passive income or loss • Rental losses • IRA contributions and taxable Social Security payments • Exclusion for income from U.S. savings bonds • Exclusion for adoption expenses (under 137)

Bonds generally have a very low correlation to stocks (they zig when stocks zag) and they offer you income in the form of fixed cash flow payments.

AGI excludes certain types of income received (e.g., municipal bond interest, most Social Security income) or payments made (e.g., alimony paid, IRA deductions, moving expenses).

Due to the fixed nature of the payments, some older individuals may be able to consider Social Security payments, employment pensions, and other predictable and / or passive income sources as part of their bond pile, thus reducing or eliminating the need for bonds.

Also, the dividend payments are a useful source of income when bond yields are low.

Continuity of income is another upside for bonds since you are assured of getting your fixed payments and the maturity payment at the end of the term.

You can reinvest your bond payments into more bonds for faster income growth but the lower rate of return means that growth is not likely to be very fast.

So in addition to the existing equity level rate of return, phantom bonds would be adding both non-existant diversification AND non-existant fixed income payments.

Fixed income investments such as bonds and commingled bond funds offer investors the opportunity to purchase an asset that may increase in value while also paying out fixed interest payments or capital distributions.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

By buying and holding bonds until maturity, investors can also buy bonds with coupon payments and maturities that meet specific income needs, as they know exactly how much they are going to receive over the life of the bond.

Fixed income securities, such as bonds and preferred stock, subject investors to the greatest amount of purchasing power risk since their payments are set at the time of issue and remain unchanged regardless of the inflation rate.

Generate income The interest payments that bonds offer can help investors build an income stream that can be reinvested or used to manage cash - flow needs — either supplementing existing income or creating a source for income in retirement.

Funds that are used to make payments on loans, for example, are therefore not being invested in stocks or bonds which offer the potential for investment income.

Bonds provide passive income through their regular interest / coupons payments.

The insurance companies have promised to make timely interest and principal payments on any bonds covered by insurance if Puerto Rico defaults, said Rob Williams, director of income planning at the Schwab Center for Financial Research.

Over the long run, however, higher interest rates boost bond fund income payments.

The public pays for the initiatives: The interest payments on the authority's bonds are largely drawn from income taxes.

Westchester County, the New York suburb where household income is 53 percent above the U.S. average, wants to use its top credit rating to sell taxable bonds to finance pension contributions and avoid increasing the highest taxes in the country... It faces a $ 54 million payment to the state retirement plan in 2011, $ 78 million in 2012 and $ 163 million in 2015, said County Executive Robert Astorino, who's working to close a $ 166 million budget gap next year.

The new plan also offers a major bow to bondholders and Wall Street credit rating agencies, who might be worried that state bonds — with payments guaranteed by the state's income tax revenues — could face future payment issues if Albany is to rely less on income tax collections.

Because bonds offer fixed interest payments at regular intervals, they may be appropriate if you want regular income from your investments.

Bonds pay a regular coupon payment which makes them ideal as an income source.

Depending on the bonds in your ladder, income payments can be scheduled monthly, quarterly, or semiannually.

The convertible bond promises to pay you income though interest payments, but allows for the possibility that you will want to exchange the bond for a fixed number of shares in the company.

You'll still get periodic income from the bond payments, but your investment is still subject to swings in valuation due to rate risk.

How attractive is a bond's fixed income payment compared to other sources of income?

This is why most pension programs hold bonds or fixed income in their portfolios in order to «match - up» fixed liabilities associated with pension payments.

Current law allows companies to deduct interest payments on bond income.

Although these payments aren't included in your taxable income, they can affect the taxation of Social Security benefits or, for certain kinds of bonds, cause you to pay alternative minimum tax (AMT).

Even though no periodic interest payment is made on a zero - coupon bond, the annual accumulated return is considered to be income, which is taxed as interest.

Lower Taxes — The U.S. government taxes most stock dividends at a lower rate than more ordinary income from cash, certificates of deposit, or bond interest payments.

Bonds, also known as fixed income, are an investment you can purchase where you essentially lend money to whoever issued the bond in exchange for future income in the form of interest payments.

Dated date Day orders Dealer Debentures Debit balance Debit spread Declared date Defeasance Defensive issue Defined benefit plan Defined contribution plan Deflation Delivery versus payment Demand note De minimus transactions Depository Trust Company (DTC) Depository trust receipt Depreciation Derivative security Depression Designated order Designated reporting member Developmental drilling Diagonal spread Dilution Direct Participation Program Discount Discount rate Discretionary account Discretionary income Discretionary orders Discretionary power Disintermediation Disproportionate sharing agreement District executive representative Diversification Diversified investment management company Dividend Dividend Re-Investment Plan (DRIP) Dollar bond Dollar - cost averaging Don't know procedures DOT System Double - exempt bonds Dow Jones Composite Average Dow Jones Industrial Average Due bill Due - bill check Due - diligence meeting DVP

Zero - coupon bonds are the only fixed - income instruments to have no reinvestment risk since they have no interim coupon payments.

For instance, going back to the $ 50,000 investment, you can guarantee a monthly income based upon the coupon payments from the laddered bonds by picking ones with different coupon dates.

Parity Parity price Participating preferred stock Participating (semi-fixed) Trusts Partnership Par value Passive income Pass - through security Payment date P / E ratio Penny stocks PHA Bonds Phantom income Pink sheets Placement Ratio Plan completion life insurance PN Point Portfolio income Position limits Positions book Pot Power of attorney Pre-dispute arbitration clause Preemptive right Preferred stock Preliminary prospectus Preliminary study Preliminary statement Premium Pre-refunding Pre-sale order Price to Earnings ratio Primary distribution Primary market Prime rate Principal Principal stockholder Principal transactions Private placement Private placement memorandum Private securities transaction Proceeds sale Production purchase program Profile Profit - sharing plans Program trading Progressive tax Project note Prospectus Prospectus delivery period Proxy Prudent Man Rule Public float value Public Housing Authority Bonds Public Offering Public offering price Purchaser's representative Put bond Put option Put spread

The holder of this bond would therefore pay tax on about $ 181 to $ 196 of income annually, despite receiving no cash payments.

Sometimes when a company's common stock continues to perform poorly, in a capital restructure, bonds may be converted to preferred shares, which gives bond holders continued income payments as dividends.

Fixed income investments are defined as securities that have a regular fixed return or payment associated with them such as bonds.

On the highest rated bonds, these semi-annual payments are a reliable source of income.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

As long as most of the homeowners in the mortgage pool keep up with their payments, a mortgage bond is a safe and reliable income - producing security.

Bond investments create steady streams of income from investment payments prior to maturity.

Most of the fund's income comes from interest payments on the bonds.

Even though you do not receive your interest payments in cash while you hold the bonds, you must pay income taxes each year on the interest as if you had.

Bonds provide passive income through their regular interest / coupons payments.