WHY INVEST IN BONDS?

Many personal financial advisors recommend that investors maintain a diversified investment portfolio consisting of bonds, stocks and cash in varying percentages, depending upon individual circumstances and objectives.  Because bonds typically have a predictable stream of payments and repayment of principal, many people invest in them to preserve and increase their capital or to receive dependable interest income.  Whatever the purpose, saving for your children's college education or a new home, increasing retirement income or any of a number of other financial goals--investing in bonds can help you achieve your objectives.

That's especially true for retirement planning.  During the past decade, the traditional fixed-benefit retirement plans have increasingly been replaced by defined contribution programs, such as 401(k) plans.  Because these plans offer greater individual freedom in selecting from a range of investment options, investors must be increasingly self-reliant in securing their retirement lifestyles.

The diversity of fixed-income securities presents investors with a wide variety of choices to tailor investments to their individual financial objectives.  Whatever your goals, your investment advisor can help explain the numerous investment options available to help you reach them, taking into account your income needs and tolerance for risk.

This site is not intended to take the place of professional advice. Please consult your investment professional before implementing any investment strategy. Incapital is a leading educator and wholesale distributor of taxable fixed-income products and services to the broker-dealer community.
Incapital markets only to broker-dealers and dealer banks and does not offer fixed-income products direct to the individual investor.

Copyright 2008. All reproduction and other rights reserved.

All information and opinions contained in this publication were produced by The Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this  general information, The Securities Industry and Financial Markets Association makes neither a  recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor.
Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.