Are Government Bonds Worth Investing In?

Image courtesy of las-initially
Image courtesy of las-initially

There are some people that invest in government bonds a lot but others that would not consider them. It is worth knowing a bit more about them before you make a decision as different people have different views on how they want to invest or save their money.

Government bonds are normally a very safe place to put your money. They are very low risk, which means at the end of the term you can trust that you will get the money that you invested plus some interest. However, the return is quite low compared to some other investments. Therefore you will not get a much interest as you might with more risky things.

It is therefore important to decide whether you are prepared to take a risk and invest in something that may give a better return but you may lose some of the money that you have invested. It is often a very difficult decision. There are some people who just hate the idea of taking a risk and would rather make sure that there money is safe even if it does mean that they may get a very low return on it. It is worth thinking about and comparing the figures to see whether you are prepared to take a bit of risk in order to potentially get a better return or not. Only you know how much risk you are prepared to take but it is worth considering a few things. Think about how badly you need the money and what you would if you did not have it. It could be that you would be prepared to take a very small risk if the increase in return was significant and so it is worth having a look at the figures. If the money is essential to you and you will need to use it in the short term, then you will want a low risk investment. Most people will be able to go for a moderate risk. The money may be important but not essential and can be tied up for a while and so this will mean that it will have a better chance of growing in value or earning a good return.

It is good to try to ignore your fear of risk, if you have one, but also be careful if you are a risk taker and think carefully. Consider not only how much you would like the money to grow but also how important it is to you that you are able to have the money back. You may like the idea that you can get a big return and think it doesn’t matter if it is high risk but you need to think about how you would feel if the money was lost. Alternatively you need to think about whether, if you used a low risk account, whether you would regret not having such a big return on the money, when you look back on it in the future. It is a decision well worth spending a lot of time over.

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Rachel Henderson is a professional freelance writer from the UK. She writes on many subjects but specialises in personal finance. As well as contributing to various blogs and websites she has her own website tracking her own money making process http://www.turnonepoundintoonemillion.com and sells her books through http://www.bowbridgepublishing.com.

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