I invested all of my retirement funds in zero coupon perpetual bonds.

Discussion in 'The Pub' started by sleshnyc, Apr 19, 2016.

  1. sleshnyc

    sleshnyc Member

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    The guy told me they were safe. Anyone else do this?
     
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  2. Papanate

    Papanate Gold Supporting Member

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    Were you on the street uptown? And was the guy respectable looking?
     
  3. Washburnmemphis

    Washburnmemphis Member

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    Did the sales pitch begin with "Pssst...buddy"?
     
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  4. sleshnyc

    sleshnyc Member

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    Ha. The irony.
     
  5. EricPeterson

    EricPeterson Member

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    Yeah, I did not read very closely before responding.
     
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  6. tjontheroad

    tjontheroad Silver Supporting Member

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    That guy doesn't know much...

    These are likely foreign euro (Greek?) debt with substantial risks. They are also not generally considered for retirement accounts. Better do your own research my friend.
     
  7. sleshnyc

    sleshnyc Member

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    where do you come up with that?
     
  8. firebird1999us

    firebird1999us Member

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    I used a reverse mortgage to pay off my existing mortgage:eeks
     
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  9. Jonny G

    Jonny G Member

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    ??? :omg

    You're having a laugh, right? (I hope)
     
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  10. tjontheroad

    tjontheroad Silver Supporting Member

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    By eliminating the fact the US doesn't offer perpetual zeros.
     
  11. sleshnyc

    sleshnyc Member

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    what's wrong with them, specifically.
     
  12. sleshnyc

    sleshnyc Member

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    I see. Can you tell me who does?
     
  13. AZChilicat

    AZChilicat Member

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    I would imagine zero percent returns in perpetuity probably comes with a 100% discount of par value?
     
  14. tjontheroad

    tjontheroad Silver Supporting Member

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    There's no "wrong" investment per say. Only the wrong "investor" for a given investment.

    The topic is pretty deep on these. Without knowledge of your full financial needs, this isn't the place to get answers I'm sorry.

    Basically, if you were "sold" this investment without a full financial plan and complete disclosure of the underlying risks, you were likely duped.

    Many foreign banks and governments.
     
  15. sleshnyc

    sleshnyc Member

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    that's why I bought so many. They were a very low price.
     
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  16. sleshnyc

    sleshnyc Member

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    i'll give you $100 if you can find me one foreign bank or government that issued a 0 coupon perp.
     
  17. tjontheroad

    tjontheroad Silver Supporting Member

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    A Google search is cheaper and faster :)
     
  18. AZChilicat

    AZChilicat Member

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    Gents, deconstruct the concept. A zero coupon is purchased at a discount to face value and this determines the effective interest rate upon maturity when the face value is paid out. A perpetual bond, and they do exist, never matures but just keeps paying interest. So this would be a bond that pays nothing forever...hence why I'd want a 100% discount of par.
     
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  19. sleshnyc

    sleshnyc Member

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    my offer stands. this post was a test and proved me right. People talk like they know what they are talking about when in fact, they have absolutely no idea. Think about the cash flows from a 0 coupon perp bond. if you can. Leave the investing to real pros.
     

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