Sentences with phrase «return of principal»

It does not include return of principal at maturity.

This is because bonds represent funds borrowed by a company or government in exchange for a predetermined interest rate, and guaranteed return of the principal by the borrower.

In that case, you'll receive a portion of every payout as a tax - free return of principal, just as you would with an immediate annuity.

A fixed income security is an investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity.

Every time I take a deep look at a high - yield investment, I find either a disguised return of principal or hidden risks.

Not only does this approach diversify one's fixed income portfolio, it also produces a recurrent return of principal.

In other cases, a group company or another entity guarantees the servicing (return of principal + interest) of these investments.

Banks can afford to offer you interest payments and the safe return of your principal because you promise to leave your money with them for the length of the investment term.

This meant the original contributions that constituted a tax - free return of principal were withdrawn before any of the earnings.

Duration considers not only when bonds mature, but also the cash flows (interest payments as well as return of principal) of the bonds within a portfolio.

Each distribution will be a proportionate blend of return of principal and gains, thereby reducing the tax hit.

Eventually, investors will wake up & finally worry about return OF principal, and by then it's too late, of course — by definition, that's the sound of the bubble bursting..!

But whether or not the trend of waiving fees continues at a rapid pace, the early return of principal inherent in these loans has detrimental implications for the investors in the packaged securities.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

As long as the policy is not a Modified Endowment Contract (MEC), or subject to a «force - out» for overfunding under IRC Section 7702B — which can be confirmed with the insurance company — withdrawals from a universal life policy are treated as a basis - first return of principal and are not taxable (until all basis has been recovered).

Normally, annuity payments are comprised of taxable gains and non-taxable return of the principal invested.

Loan or Debt Crowdfunding: Also known as peer - to - peer lending, individuals provide capital to businesses or individuals in exchange for interest payments and return of principal over a defined time period, similar to a mortgage or a car loan.

Odesser likes individual bonds because they reward the investor with an income stream and return of the principal value of the bond when it matures.

Fixed income allocations emphasize return of principal.

When you reinvest these taxable distributions back into the fund, this is the same as contributing more money, which increases basis, which results in less taxes being paid when you withdraw money (because it's more return of principal because of the higher tax basis).

Therefore, any taxable gain that comes out of the contract is reported before the nontaxable return of principal.

A fixed annuity offers a guaranteed return of the principal you paid in, along with a minimum amount of interest.

Prepayment risk For mortgage - backed securities, the risk that declining interest rates or a strong housing market will cause mortgage holders to refinance or otherwise repay their loans sooner than expected and thereby create an early return of principal to holders of the loans.

As it turns out, this tax - free return of principal is one of the biggest reasons why non-qualified accounts fare much better long - term than traditional wisdom has postulated for decades.

SPIAs are a combination of return of principal and interest, so in a non-IRA account, the vast majority of your income stream will not be taxable.

They expect the return of principal and an additional payment, usually of stock.

My interest and return of principal are not being reinvested.

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

Distributions may include a return of principal or borrowed funds, which may lower overall returns to the investor and may not be sustainable.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed.

Debt deals typically offer a fixed rate of return throughout the loan's term and a return of principal at maturity of the loan.

Another view lets Matt review the schedule of when to expect interest payments and the return of principal — providing a view into the cash flow he could expect if he chooses to purchase the suggested bond ladder.

The conversion of that non-deductible IRA is a taxable event, but the portion of the IRA that is attributable to non-deductible contributions is treated as a return of principal and thus has no tax consequences (thus Line 15a of Form 1040 is $ 5,500 but 15b reporting the taxable amount is $ 0).

They are typically structured like other bonds with regular coupon payments and a return of principal at maturity.

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

Until the wheels come off, however, ANCHORMAN 2 is a lively and entertaining experience, held together by the return of the principal characters from the first: San Diego's Channel 4 News Team, which includes the still - sexist Burgundy, pervy Brian Fantana (Paul Rudd), racist / bigoted / clueless Champ Kind (David Koechner) and abnormal weatherman Brick Tamland (Steve Carell).

Unsecured bonds are called debentures; their interest payments and return of principal are guaranteed only by the credit of the issuing company.

Rising interest rates damage bonds the most; 100 % of a bonds return comes from interest payments and the return of principal at the end of the bond's life.

They are typically structured like other bonds with regular coupon payments and a return of principal at maturity.

I also exclude bond FUNDS, which I would never advocate anybody to buy — I'm referring to actual bonds which have a maturity date and you're guaranteed the return of your principal.

And then you have the non-traded REITs where there's very little liquidity and you don't know, and very little transparency so you're not sure exactly what your income really is, is it a return of principal?

But providing income and diversification isn't the only role bonds can play in a portfolio: Lower - risk bonds, such as US Treasury bonds, can also help smooth out the ups and downs of your overall portfolio, providing some return while guaranteeing the return of principal when the bonds mature.

The bond investors in a few of these countries, of course, are concerned about the return of their principal.

Do you get financial statements regularly from whoever guarantees the return of principal at maturity?

a type of asset class in which the investments provide a return in two possible forms; coupon paying bonds have fixed periodic payments and a return of principal; zero coupon bonds are sold at a discount, do not pay a coupon, and have a return of principal plus all accumulated interest at maturity

Each vehicle generates income while guaranteeing the return of your principal.