Bonds: The Less Glamorous Cousin of Stocks
Bonds are often seen as less exciting than stocks but offer a steadier income stream. When you buy a bond, you’re lending money to an entity, like a government or corporation, in exchange for regular interest payments.
Types of Bonds: A Variety of Lenders
There are different types of bonds – government, municipal, and corporate. Each comes with different risk levels. Government bonds are generally safer, while corporate bonds can offer higher returns but with increased risk.
Investing in Bonds: A Strategy for Stability
For investors like Linda, who prefers stability over high risk, bonds are a cornerstone of her portfolio, providing regular, predictable income.
