Is 10% return on 10 year investment good ratio?
I am thinking of buying government bonds and these are returns. Is this good investment? It should be one of the safest investment. I come higher risk gives higher reward. Would you recommend any other investment other than bonds?
<p>You have two cases here. Let me explain:</p><p>1. If the total interest after 10 years is 10% then it means that if you buy 1000$ worth of bonds you get 1100 at the end. Probably should look for other options</p><p><br></p><p>2. If the 10% is compound interest, it means that the interest is recalculated each year. Buying 1000$ worth of bonds will give you exactly 2,707.04$ at the end of those 10 years and that my friend is a very good investment. Don't worry to much, the government will pay you back the money. Just hope the inflation will not damage the actual value of the respective currency. </p><p><br></p><p>Hope it helps</p>
<p>If interest is annual, yes if it is total over 10 years, it is not. Find something else that at least covers for the inflation, >2% year. </p>
<p>Due to the pandemic, governments had to take on a lot of debt. Together with central banks, they now have no choice but boost inflation in order to settle their debt. It is likely that your money will loose purchasing power over time due to inflation. it is also likely that if you increase your money by 10% within 10 years, it will still loose purchasing power compared to now. Besides bonds, look for stocks and bitcoin.</p>
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