savings-bond

Vocabulary Word

Definition

A 'savings bond' is a type of investment where you lend money to the government. Over time, the bond earns interest and the government pays back more money than you lent.

Examples in Different Contexts

In retirement planning, 'savings bonds' are considered by some as part of a diversified retirement portfolio due to their safety and predictable returns. A retirement planner might advise, 'Including savings bonds in your retirement portfolio can provide a stable income stream in your later years, with minimal risk.'

Practice Scenarios

Education

Scenario:

Your child has got admission to a good school. Now it's time to talk about funding their education.

Response:

That's why we started investing in savings bonds when they were born. It should help cover some of the education expenses.

Finance

Scenario:

The client is looking for low risk investments with decent returns. Any investment vehicles you might recommend?

Response:

How about recommending savings bonds? They provide a guaranteed return and are virtually risk-free.