Bonds 101

Let's talk about THE most boring investment on planet Earth: bonds.

A bond is when you lend someone money, and they pay it back to you in a specified amount of time, with some interest added to it.

Quite frankly, bonds have been irrelevant for the last couple of years, because interest rates have been so low.

Think about it this way. if you had loaned somebody money a year ago and you had an interest rate for a five year period, of let's say, 5%, when interest rates come down and you still have that 5% guaranteed income for the next five years, that means there's more value.

Because if that same person was borrowing money now, they could do it at like 1%, 2%, 3%, but either way, it would be lower than the 5%, for sure.

Interest rates are continuing to come down, which makes those bond prices go up. So, all that being said, right now is a really great time to own bonds.

If you're not invested in bonds, it's worth a conversation, and I'm happy to take this offline and talk about it for as long as you want.

I love bonds! They're super boring, but I love talking about them!


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This content is for educational and informational purposes only. Please consult with a financial advisor before making any financial decision to make sure it's suitable for your specific situation and aligning with your goals!