Investing in Bonds For Dummies

Improve the strength of your portfolio with this straightforward guide to bond investing

Investing in Bonds For Dummies introduces you to the basics you need to know to get started with bond investing. You’ll find details on understanding bond returns and risks, and recognizing the major factors that influence bond performance. Unlike some investing vehicles, bonds typically pay interest on a regular schedule, so you can use them to provide an income stream while you protect your capital. This easy-to-understand guide will show you how to incorporate bonds into a diversified portfolio and a solid retirement plan.

• Learn the ins and outs of buying and selling bonds and bond funds
• Understand the risks and potential rewards in corporate bonds, government bonds, and beyond
• Diversify your portfolio by using bonds to balance stocks and other investments
• Gain the fundamental information you need to make smart bond investment choices

This Dummies investing guide is great for investors looking for a resource to help them understand, evaluate, and incorporate bonds into their current investment portfolios.

Introduction 1

Part 1: Getting Started with Bond Investing 5

Chapter 1: Focusing on Bond Fundamentals 7

Chapter 2: Investigating Interest 27

Chapter 3: Surveying Types of Bonds 53

Part 2: Exploring the Bond Marketplace 85

Chapter 4: Diving (Carefully!) into Individual Bonds 87

Chapter 5: Selecting Bond Funds Wisely 101

Chapter 6: Fulfilling Your Need for Steady Cash 129

Chapter 7: Aiming for Financial Security in Old Age 147

Part 3: Customizing Your Bond Portfolio 159

Chapter 8: Building Your Portfolio’s Foundation 161

Chapter 9: Considering Return, Risk, and Realism 175

Chapter 10: Slicing the Pie: Determining How Much Should Be in Bonds 191

Chapter 11: Figuring Out Your Bond Buys 221

Part 4: The Part of Tens 239

Chapter 12: Ten Common Misconceptions about Bonds 241

Chapter 13: Ten Mistakes That Bond Investors Should Avoid 247

Index 253

RUSSELL WILD advises clients in retirement planning and global portfolio diversification through the use of fund management. He has written nearly two dozen books on financial topics.

ADD STABILITY TO YOUR PORTFOLIO WITH BONDS

Bonds are an essential component of a diversified portfolio. They can protect your capital while providing a reliable income stream. Investing in Bonds For Dummies explains how to incorporate bonds into your portfolio and rebalance your holdings as your circumstances or investment goals change.

DISCOVER

• Strategies for buying and selling bonds
• How bonds provide a predictable income stream
• The major factors that influence bond returns
• The many types of bonds and bond funds