When purchasing new bonds, investors should consider their risk tolerance, liquidity needs, income requirements and interest rate risk. A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposing directions. When interest rates go up, bond prices historically go down—and that is the hazard known as interest rate risk.Continue reading » Interest Rate Risk: When is it Time to Get Out of Bonds?
My broker told me my money is safe in bonds. So why is my account value down? It’s a question that we hear from our clients from time to time. Clients who trust their brokers when their brokers tell them their money is safe in bonds then end up with less money than what they started with. To understand why this happens, you first need to understand the ins and outs of a bond, including the different types of bond risk.Continue reading » Assessing Bond Risk
A municipal bond is a debt obligation issued by a local authority, including a city, county, state or other governmental entity. There are a few tried and true reasons why people tend to cite municipal bonds as a wise investment strategy. A general consensus may suggest that municipal bonds are good in terms of:Continue reading » Municipal Bonds Are Completely Safe, Right?
Certain factors in the stock market are appealing to investors currently, including relatively low market volatility, bull market tendencies and record stock prices. However, while it may appear current investors can do no wrong in the market, there may be risks you haven’t considered regarding stocks and bonds that could leave you vulnerable.Continue reading » Are Stocks and Bonds Safe?
10 Critical Financial Mistakes for People 55 and Older: Not Understanding Bonds
Note: This is the third in a series of 10 Critical Financial Mistakes for People 55 and Older.Continue reading » Not Understanding Bonds