Bonds can be an important element in the foundation for your investment portfolio, helping to: reduce fluctuations in the overall value of your portfolio; enhance investment income; and/or prepare for future expenses (e.g., college and retirement).
The bonds you choose to invest in depend on many of factors. In addition to determining a suitable mix of investments based on your financial goals, investment time frame and risk tolerance, you need to be able to take into consideration:
Maturities
Prices
Credit ratings
Yields
Taxable status
Call features (if any)
Your ROGO Capital financial consultant can help simplify the complex process of investing in bonds. Investors should keep in mind that as interest rates rise, existing bond prices of already outstanding fixed-income securities tend to fall. Long-term bonds are generally more exposed to interest rate risk than short-term bonds.