How To Invest in Bonds Online, The Fixed Income

1. The Benefits of Investing in Bonds. Bonds Provide Income 1 Bonds tend to offer the highest and most stable cash streams Bonds Offer Diversification 2 Bonds can help preserve capital for equity investors during times when the stock market is falling. Bonds Preserve Principal 3 It may be a good idea to increase your allocation to fixed income and decrease your allocation to equities as you move closer to your goals. Bonds Offer Tax Advantages 4 Tax reasons shouldn't be the main reason you choose an investment, especially if you're in a lower tax bracket. Better Than the Bank? 5 The interest rates on bonds are typically greater than the deposit rates paid by banks on savings accounts or CD. As a result, if you are saving and you don’t need the money in the short term (in a year or less), bonds will give you a relatively better return without posing too much risk. HTTPS://WWW.THEFIXEDINCOME.COM/