A bond issued by a government authority, with a promise of repayment upon maturity. A low-risk investment backed by the taxing power of the government.
Guaranteed payments
Low-risk option
Flexible diversification
Securities such as treasury bills, savings bonds, and notes also offer a periodic coupon or interest payments throughout the term.
Because the taxing power of the government is so strong, government securities are typically considered low-risk investments because the securities are backed by the credit of the US government. These securities are issued throughout the Treasury Department to institutional investors.
A popular option for investors is to hold government bonds through mutual funds, which help investors diversify their portfolios without having to invest as much money.
Once you have determined that a government security is suitable for you, it can be purchased with your Self-Directed IRA or other retirement accounts at Mainstar Trust. Click below to find out how to invest in Government Securities with a Mainstar Trust account.