Investment

Market interest rates and bond prices often move in opposing directions, meaning that when rates rise, bond values fall. Retirees can lessen interest rate risk by investing in shorter-term bonds that are less susceptible to rate hikes. Experts suggest that rising interest rates may be beneficial to retirees who have a longer time horizon. Is […]

Bonds can be an excellent backup plan if other investments fail, especially in the short term. Bonds, on the other hand, should be included in your long-term investing portfolio. When should you consider investing in bonds? You’re looking for a way to make money. While bonds don’t give the same returns as stocks, they can

Municipal bond interest is tax-free in the United States, however there may be state or local taxes, or both. Be aware that if you receive Social Security, your bond interest will be recognized as income when determining your Social Security taxable amount. This could result in you owing more money. Municipal bond interest rates are

“The I bond is a fantastic choice for inflation protection because you receive a fixed rate plus an inflation rate added to it every six months,” explains McKayla Braden, a former senior counselor for the Department of the Treasury, referring to a twice-yearly inflation premium. Why invest: The Series I bond’s payment is adjusted semi-annually

Bonds are still significant today because they generate consistent income and protect portfolios from risky assets falling in value. If you rely on your portfolio to fund your expenditures, the bond element of your portfolio should keep you safe. You can also sell bonds to take advantage of decreasing risky asset prices. Are bonds secure

Banks issue certificates of deposit, or CDs, which often pay a greater interest rate than savings accounts. When rates are expected to climb, short-term CDs may be a better alternative, allowing you to reinvest at greater rates when the CD matures. The maturity dates for these federally insured time deposits might range from a few

If you’re approaching retirement age or are a more conservative investor in general, investing your 401(k) assets in bonds may make sense. However, doing so may cost you in the long run in terms of portfolio growth. Talking to your 401(k) plan administrator or financial advisor about the best strategy to weather a bear market

One of the reasons munis have outperformed other fixed income asset classes this year is a supply and demand imbalance. 1 It’s also one of the reasons for tight spreads and the riskier parts of the muni market outperforming the safer ones. According to the Investment Company Institute, flows into muni mutual funds and ETFs

Since the end of the Great Recession, the 10-year yield has been hovering around 3%. The last time rates were above this level was during the Federal Reserve’s rate hikes in 2018, however that wave of monetary hawkishness faded soon. Due to the perception of limited long-term economic growth, the 10-year was only 2% heading

With poor yields and rising rates, the question of whether it makes sense to purchase bonds or bond ETFs is a hot topic. Interest rates and their direction, risk and quality ratings, sector mix, average maturity and length, and expense ratio are all important considerations for bond funds. BND is well-managed and has a very