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How to Become a Better Investor: Part 6

Stocks on their own seem to be enough, but what many people don’t know is that bonds are much less volatile than stocks.

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Perhaps you’re one of the many people who don’t understand why bonds are necessary for your portfolio. Stocks on their own seem to be enough, but what many people don’t know is that bonds are much less volatile than stocks. In fact, having a more diversified portfolio will increase the stability of your stocks in the future.

In today’s episode, Kate Stalter shares tips on how to help you identify which bonds are the most financially beneficial and why you should invest. If you want to retire in a position where you can have fun, give back to others, and enjoy the family and life you’ve built, tune into this episode of Better Money Decisions to enhance your probability of accomplishing those goals.

Show Highlights:

Why you need bonds
What happens when interest rates go up and you own bonds with lower rates
Primary reasons why long-term bonds are subject to greater interest rate risks than short-term bonds
Why you want to tilt towards a shorter-term bond
How debt effects bonds
How to identify junk and high yield funds

About the Author

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Kate Stalter

CMO and Senior Financial Advisor

Kate is a Series 65-licensed advisor, has hosted the Daily Stock Analysis and Market Wrap videos on Investors.com, and taught Investor’s Business Daily live seminars. She contributes to Forbes, US News & World Report and TheStreet. Kate’s primary focus is helping clients who face decisions about portfolio allocation, Social Security strategies, insurance needs, estate planning, college funding and all manner of financial questions.

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