Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Novice with bond questions
Old 04-06-2008, 01:05 PM   #1
Confused about dryer sheets
Join Date: Apr 2008
Posts: 1
Novice with bond questions

Hello Everyone,
The questions that I have may seem elementary and simple to most of you... but…I have bought stocks in the past but never bonds.
I had an individual that I just had to my office who was cold canvassing on the phone. He does not work for a large investment company nor any of the nationally advertised ones.
He told me of several bonds, paying a good dividend for the right period of time that I was looking for.
The bonds are rated AAA and are from companies that I am aware of and to me are stable enough to buy.
Question 1, When a bond is purchased from a “financial advisor” of the above type how could I make sure that he is legitimate? AND… Question#2, Who is my check to be made out to. He says a transfer company…I would think it should be made out to company named on the stock.
Thanks everyone for your help in answering these two questions.


houndog is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-06-2008, 01:33 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
Join Date: Mar 2003
Posts: 15,911
Unless this individual can stand up to a healthy amount of due diligence from you (who are you? who is your firm? why should I have anything to do with you? etc.), I wouldn't even consider doing business with a cold caller.

If you have an account with any major discount brokerage (Fidelity, Schwab, etc.), you can call their bond departments and get shown a wide array of individual bonds to purchase. But make sure youare capable of doing sufficient research on the issers to avoid buying something that should not be rated what it is. Lots of people have lost lots of money buying highly rated bonds that they knew nothing more about than the rating and the issuer's name.

"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."

- English Bob
brewer12345 is offline   Reply With Quote
Old 04-06-2008, 09:54 PM   #3
Thinks s/he gets paid by the post
Rambler's Avatar
Join Date: Jul 2007
Posts: 2,081
All the warning bells and klaxons are ringing...

As Brewer said, check with your well known brokerage. If the bonds are from AAA rated outfits, you can most likely get them from a brokerage you know and respect. No need to use (or pay for) an individual financial adviser for that.

Rambler is offline   Reply With Quote
Old 04-06-2008, 09:55 PM   #4
Thinks s/he gets paid by the post
Rambler's Avatar
Join Date: Jul 2007
Posts: 2,081
BTW, why did you post this thread in the Health section? Probably should be in FIRE and Money.

Rambler is offline   Reply With Quote
Old 04-07-2008, 09:51 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
Join Date: Aug 2006
Posts: 12,484
I'm going to move it if that's ok with everyone........
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 04-08-2008, 02:12 PM   #6
Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,304
cold caller ? Run away ... run away ...
use a major brokerage firm, especially if you are a novice.
You can still get your pockets picked ... but at least you are with one of the big boys and may have a chance to have any greivences heard

Life is GREAT!
megacorp-firee is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Advice on Current Financial Situation (Novice) yamasho Young Dreamers 20 06-15-2007 07:58 AM
Questions Tiger Forum Admin 2 05-23-2007 11:07 AM
ISM Questions dm FIRE and Money 20 01-30-2007 12:47 PM
TIPS: Buy Bond or Bond FUND? Pros & Cons please! Jane_Doe FIRE and Money 67 11-20-2006 08:29 PM
Where to invest 30k for aging novice? dory36 FIRE and Money 7 10-16-2003 06:49 AM


All times are GMT -6. The time now is 01:03 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.