Bonds provide income to your investment portfolio. They are frequently, although not always, less volatile than stocks.
Caveats:

1. Bond prices fall when interest rates rise or when the institution paying you the interest or principal has problems. Consider shorter-term bonds, which are frequently less risky than longer-term bonds.
2. The least risky way to buy bonds is to purchase individual bonds in a brokerage account rather than bond funds and keep them until they mature. Your income and repayments from individual bonds will be predictable, as long as the institution with the bonds remains solvent.
3. Make sure that you have enough income from all of your investments to support your lifestyle. Remember to take inflation into account in your calculations.

The bottom line – consider including bonds in your portfolio as part of your diversification program, but look before you leap.

If you have questions about how to use bonds in your investment strategy, please contact us at 952-881-4696.

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Mark Fischer, Certified Financial Planner
Fischer on Finance
7301 Ohms Lane, Suite 365
Edina, MN 55439
Phone: 952-881-4696
Fax: 952-881-4534

Securities offered through Multi-Financial Securities Corporation, member FINRA, SIPC. Fischer on Finance, LLC is not affiliated with Multi-Financial Securities Corporation.

All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.