How I Did in 2013!

For the past 5 years, I have been writing to you about how you can make money investing in Corporate Junk Bonds. Like me, I am sure you ran into many people who claim they have done well in the markets but have no documentation to prove it. I made sure that as I invested, I documented what I was doing in my blog so that you can follow along. At the end of the 5 years of investing, I showed you that I can and did buy a retirement home with most of my profits.

From 2000 to 2008, I did not work at all for 2.5 years. I worked at minimum wage jobs for 3 years and the rest of the time, I worked as a contracting computer programmer. I did not start working full time again until October 2008. Also remember, I was paying for my children's college education while I was not working. My oldest daughter got her BS degree paid for by my investments from 1983 to 2001. So I did not have much as far as money to use for retirement.

Stephanie Ann Williams Tulloch, MBA  after receiving her BS Degree from Central Pennsylvania College

Here is the first article that I wrote to you about bonds below.

http://bondinvestments.blogspot.com/2008/12/introduction-into-corporate-bond-world.html

Introduction into the Corporate Bond World Part 1

Written and Published on Dec. 5, 2008

I also told you that investment conditions change and I can see that they are starting to change now. Over the past 5 years, interest rates were falling. Now they are starting to rise. Here is why at the end of 2013, my portfolio only increased 13.576% while the Dow Jones Industrial Average increased 26.5%. This is the first year in 5 years that the Dow Jones Industrial Average has beaten the average of my Junk Bond Portfolio. As an investor, I am happy with my return. If you are a speculator, you did very well if you invested in Dow Index Mutual Funds. 

Starting now, I will buy shorter term bonds maturing in less than 4 years. That way, as interest rates rise, the price of my bonds will not fall just in case I need to sell them before maturity. I will also be able to buy more bonds giving a higher interest rate over time.

Please remember, I invest my money. If you buy index mutual funds design to match the performance of the markets, you are speculating meaning that you are taking more risk. 

What is an Investor?

An investor is an individual who commits money to investment products with the expectation of financial return. These investments would be various types of bonds. Generally, the primary concern of an investor is to minimize risk while maximizing return. They know how much money they are committing to the investment and how much they plan to get out of the investment. 

What is a Speculator?

A speculator is a person who is willing to accept a higher level of risk in the hopes of collecting higher-than-average profits. They act on research done by a research firm or by research done by the speculator. Most stocks and mutual funds are products used by speculators. 

What is a Gambler?

A gambler is someone that bets on an uncertain outcome. Basically, they play a game of chance. They take a risk in the hope of gaining an advantage or a benefit, usually by engaging in reckless or hazardous behavior. They use stocks, mutual funds, options, and commodities to try to make big returns. In most instances they end up with poor results.