Tuesday, May 17, 2011

Easy Money for Young IRA Investors

If I had 21 years to go to retirement, I would invest in Pulte Group, Inc. 7.875% of 06/15/2032 bonds. It is a Moody’s B1 and a Standard and Poor’s BB- rated bond. As of May 12, 2011, the bond sold for $937.50 with a Yield to Maturity of 8.517%.

This means if you bought the bond on June 15, 2011 and held it to maturity, you would get $78.75 per year for 21 years or $1,653.75. Plus the investor gets $62.50 in appreciation. For an investment of $937.50 over 21 years, you get $1,716.25 or a total of 183.07%. Since this is in your IRA, your taxes are deferred until retirement. So you can reinvest all the money into other bonds giving high yields. All the company has to do is stay out of bankruptcy and the investor gets their money.

PulteGroup, Inc. (NYSE: PHM) based in Bloomfield Hills, Mich., is America's premier home building company with operations in 60 markets and 28 states. According to Pulte Group Inc., the Company has an unmatched capacity to meet the needs of all buyer segments through its brand portfolio that includes Pulte Homes, Centex Homes and Del Webb. If you are an investor and need additional assistance, please use the internet; contact your broker or Pulte Group’s Investor Relations / Media Relations team.

http://phx.corporate-ir.net/phoenix.zhtml?c=147717&p=irol-contact
You can look up the Public Relations contacts by using the above link.

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