2006-07-17 05:05:24 · 4 answers · asked by sonnyonthelake 1 in Business & Finance ➔ Investing
Check out the Vanguard bond funds.
2006-07-17 06:47:37 · answer #1 · answered by Yardbird 5 · 0⤊ 0⤋
If you are a bond buyer and are going to make regular purchases, I believe e-trade has the best deal at the lowest price. However, I have noted that e-trade only provides about .10% to .20% difference with the rates available at www.bankrate.com for the best CD rates of similar terms, which of course if you are making a debt investment over 5 years is meaningless. Still, if you purchase 10 or more bonds at a time, there is no commission and if you have adequate size or activity then there is no maintenance fee either.
If not that, then I suggest either a CD or a very low management fee, no load bond fund, probably one at Vanguard.
2006-07-17 13:19:54 · answer #2 · answered by OPM 7 · 0⤊ 0⤋
A corporate bond usually costs about $1,000. However, if you want to buy bonds in round lots, the size is $100,000. Buying smaller bonds will cause you to pay too much in transaction costs. This doesn't allow you to have a well diversified portfolio unless you are worth millions and millions of dollars.
The best solution is to put your money in a mutual fund that invests in bonds.
2006-07-17 16:52:21 · answer #3 · answered by Ranto 7 · 0⤊ 0⤋
Through an online brokerage (ie TDWaterhouse for instance) - that is at least the easiest these days, and are quite cheap. I take it that is what you meant by "best and cheapest".
2006-07-17 12:48:57 · answer #4 · answered by Tyler R 2 · 0⤊ 0⤋