Nurturing Financial Freedom

Do I Need Bonds in My Portfolio

Episode Notes

Birch Run Website: www.birchrunfinancial.com

Birch Run Financial email: info@birchrunfinancial.com

Birch Run Financial Phone Number: (484) 395-2190

Do I Need Bonds in My Portfolio?

We begin today's episode with a quick market recap of the past month, then we get into a question that Alex Cabot and Ed Lambert of Birch Run Financial are frequently asked.  "Do I Need Bonds in My Portfolio?"

First, Ed explains what bonds are and how they work.  And while bonds are often more stable than stock investments, bonds do carry three risks. Ed walks us through them. They are:

  1. Credit Risk
  2. Interest Rate Risk
  3. Call/Reinvestment Risk

Then, Alex explains why investments are important to a investor's portfolio, and who should own them.  He breaks down time horizon, short and long term financial goals, and even retirement horizon. These are all factors that should be considered when looking into bonds for your portfolio.