Investing in Bonds For Dummies

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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!

Автор

Russell Wild

#Бизнес-книги #Зарубежная литература #Финансы #О бизнесе популярно

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Investing in Bonds For Dummies®

Published by:

John Wiley & Sons, Inc.,

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Hoboken, NJ 07030-5774,

www.wiley.com

Published simultaneously in Canada

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Library of Congress Control Number: 2015950105

ISBN 978-1-119-12183-1 (pbk); ISBN 978-1-119-12184-8 (ePub); ISBN 978-1-119-12185-5 (ePDF)

Introduction

Welcome to Investing in Bonds For Dummies! Perhaps you bought this book online, either in text or digital format. But if you are still the kind of reader who prefers to browse through aisles and handle books before you buy them, you may be standing in the Personal Finance section of your favorite bookstore right now. If so, take a look to your left. Do you see that pudgy, balding guy in the baggy jeans perusing the book on getting rich by day-trading stock options? Now look to your right. Do you see that trendy young woman with the purple lipstick and hoop earrings thumbing through that paperback on how to make millions in foreclosed property deals? I want you to walk over to them. Good. I want you to take this book firmly in your hand. Excellent. Now smack each of them over the head with it. Nice job!

Wiley (the publisher of this book) has lawyers who will want me to assure you that I’m only kidding about smacking anyone. So in deference to the attorneys, and because I want to get my royalty checks … I’m kidding! I’m only kidding! Don’t hit anyone!

But the fact is that someone should knock some sense into these people. If not, they may wind up – as do most people who try to get rich quick – with big holes in their pockets.

Those who make the most money in the world of investments possess an extremely rare commodity in today’s world – something called patience. At the same time that they’re looking for handsome returns, they are also looking to protect what they have. Why? Because a loss of 75 percent in an investment (think tech stocks 2000–2002) requires you to earn 400 percent to get back to where you started. Good luck getting there!

In fact, garnering handsome returns and protecting against loss go hand in hand, as any financial professional should tell you. But only the first half of the equation – the handsome returns part – gets the lion’s share of the ink. Heck, there must be 1,255 books on getting rich quick for every one book on limiting risk and growing wealth slowly but surely.

Welcome to that one book: Investing in Bonds For Dummies.

So just what are bonds? A bond is basically an IOU. You lend your money to Uncle Sam, to General Electric, to Procter & Gamble, to the city in which you live – to whatever entity issues the bonds – and that entity promises to pay you a certain rate of interest in exchange for borrowing your money.

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