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Investing in Bonds For Dummies

Investing in Bonds For Dummies

Russell Wild

ISBN: 978-1-119-12184-8

Oct 2015

288 pages



Change up your investment strategy. Diversify with bonds!

Stock, bonds, mutual funds—are all of these elements really necessary in your investment portfolio? Yes! Investing in Bonds For Dummies introduces you to the world of bond investment—and equips you to diversify your portfolio—through the concise and approachable presentation of the details surrounding this form of investment. This engaging text offers a clear, yet thorough take on the background of bond investment, helping you understand why it's such an important part of a well-rounded portfolio. Additionally, the book explores bond returns, risks, and the major factors that can influence the performance of bonds.

When it comes to diversifying your investment portfolio, most financial advisors recommend a strategy that mixes high- and low-risk options, allowing you to protect your investment without being too conservative. Depending upon your age, financial goals, and other key factors, the percentage of your portfolio made up of bonds may vary; however, it's safe to say that bonds will play a role in your investment strategy.

  • Understand how to buy and sell bonds and bond funds, and why it's important to do so
  • Measure the returns and risks that different bonds have to offer, preparing yourself to make educated investment decisions
  • Diversify your investment portfolio by adding bonds to the mix
  • Avoid common investment mistakes when navigating the world of bonds

Investing in Bonds For Dummies can keep your investment portfolio from getting stagnant by showcasing why diversification with bonds is essential to a successful investment strategy!

Introduction 1

Part I: Bond Apetit! 7

Chapter 1: The Bond Fundamentals 9

Chapter 2: All about the Interest 29

Chapter 3: Types of Bonds 51

Part II: Bonds Away! The Bond Marketplace 79

Chapter 4: Investing (Carefully!) in Individual Bonds 81

Chapter 5: Picking a Bond Fund That Will Serve You for Life 95

Chapter 6: Fulfilling the Need for Steady, Ready, Heady Cash 123

Chapter 7: Finding Comfort and Security in Old Age 143

Part III: Customizing and Optimizing

Your Bond Portfolio 155

Chapter 8: Developing Your Investment Game Plan 157

Chapter 9: Risk, Return, and Realistic Expectations 169

Chapter 10: Balancing Your Portfolio and Choosing Bonds 185

Chapter 11: Strategizing Your Bond Buys and Sells 217

Part IV: The Part of Tens 235

Chapter 12: The Ten Most Common Misconceptions about Bonds 237

Chapter 13: Ten Mistakes That Most Bond Investors Make 243

Chapter 14: Ten Q & A’s with Bond Guru Dan Fuss 249

Index 253