If you have ever tried to do any research on investing for retirement, chances are you have heard the term “bonds.” This type of investment option is extremely prevalent, especially when it comes to saving for retirement in a 401(k) plan. Plus, bonds are an enormously important component of a diversified investment strategy.
So, when someone says you should be investing in bonds, what exactly does that mean?
Well a bond is simply a loan given to a government entity or corporation by an investor. By issuing a bond the company is essentially making a promise to the investor, saying they will pay you back, plus interest in a certain period of time.
If you’re investing in bonds, bond funds, or just wondering the impact they can make in your investment portfolio, it’s time to watch our “Bonds Basics” video below. By watching, you’ll gain a basic understanding of what bonds are, how they work, and how they can help you.
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