Ways to Buy US Government Bonds (Investing Tips for Americans)

How and where to buy US government savings bonds? A question asked by a reader from Delaware, USA. As I’ve explained before, government bonds are safe investment because bonds are issued by the government. You and the government has agreement when you invest in bonds.

This simply means the government can give you investment return guarantee. No wonder why many investors are investing in government bonds, since the investment was backed up by a government. So, they feel really safe and comfortable.

However, even if it is safe and low risk type. It can only give your investments a low earned interest. Even though it can only give you a low earned interest, it is still advisable to allocate your assets properly by investing some portion of it in bonds. Asset allocation is very important in investing.

Asset allocation is the best way to diversify your assets. Example of asset allocation; you will invest 30% of your money in stocks, 20% in mutual funds, 20% in bonds, 20% in business and 10% in certificate of deposits.

I assumed the reader know what government bonds is all about. In simplest meaning a bonds is an “IOUs (I Owe You)” issued by governments and corporations to raise financial capital to use to operate their businesses.

How to Buy US Government Savings Bonds?

Answer to the Question: You can easily buy a US federal government bonds directly from the U.S. Treasury. If you are planning to buy both government bonds and corporate bonds, buy through mutual funds companies or stock broker.

Important Resources: 
Treasury Direct Official Website can help you buy and manage savings bonds.
Bonds and Securities | http://www.treasury.gov/services/Pages/bonds-securites.aspx

Update from Treasury Direct: An Online Savings Bond Program

As of January 1, 2012, paper savings bonds are no longer being sold over the counter at banks and other financial institutions. Instead, Americans can continue to buy savings bonds online from the convenience of home through TreasuryDirect.gov. Opening a TreasuryDirect account is free, and you can buy and manage your savings bonds online, anytime – 24 hours a day, 7 days a week. You can also purchase online savings bonds as gifts – TreasuryDirect offers a variety of gift certificates for any occasion.

For further information, please visit TreasuryDirect.gov. if you want to know the exact guide, please visit Treasury Direct Tutorials and watch the demo.

In mutual fund companies, they are issuing bonds through mutual fund type called “mutual fund bond fund” Try to ask in the banks, some banks are issuing bonds through their “trust investment”, in unit trust investment funds, there is a UITF type called UITF bond fund.

For further explanation, ask a CFP Certified Financial Planner in your local area or state. To know more on how to buy US Government savings bonds visit the official website of U.S. Treasury or find legitimate brokers online. Always remember, investing your hard earned money is the best way to retire rich and comfortable. Share this information to your friends in Facebook or Twitter who wish to invest in bonds.