Good Financial Results: All About Bonds


    Everything about bonds

    What to do with this stack of savings bonds?

    by Jim Bradley, Penobscot’s financial advisor

    If you’re like me, you’ve amassed a neat stack of these cool looking Series EE bonds over time. Mine came from occasional gifts from my grandparents and payroll programs from my first few jobs. And if you’re like me, those bonds are long gone and used to buy a Chrysler Cordoba in 1978 (hey, I was a sucker for ‘Corinthian Leather’.)

    But if you’re NOT like me, you may still have a pile of bonds, be it in a shoebox in your closet or in a safe at the bank. What should you do with it?

    [Read the Full Article]

    Manage interest rate risk on your bond investments

    by Robert Stoll, Financial Design Studio

    Inflation is becoming a hot topic in business circles. Three rounds of business reviews and economic support are pumping enormous sums of money into the American economy. In response, long-term interest rates have risen from an all-time low. This raises an important issue for investors: How do we manage the interest rate risk of bonds?

    It is important to understand how changes in interest rates will affect your bond investments. Customers view their bonds as a source of income and a source of stability. But bond prices can move up and down like stocks. Hence it is important to understand Why Bond prices could go up or down.

    [Read the Full Article]

    Why Bonds?

    by Britton Gregory, Seaborn Financial

    I’ve been asked a lot lately, “Why should I have bonds in my portfolio?” And as is the case with any question, that (a) it is a good one, (b) I have been asked a lot of questions, and (c) I will likely be asked again in the future (probably even in decades!), It is worth doing in detail talk about it. Hence: this article!

    The main argument I hear is, “Interest rates are low. The Fed has made it clear that this is likely.” stay low. With that in mind, why should I hold bonds? “So why?

    [Read the Full Article]

    The biggest myth about bond yields

    by Massi De Santis, Desmo Wealth Advisors

    You may have heard that this is not a good time to invest in bonds. With low interest rates, you won’t get a great return. Low interest rates today mean that interest rates can only rise in the future, and you can expect bond prices to fall when interest rates rise. Some investors and analysts have declared death at 60/40, a traditional portfolio allocation of 60 percent in stocks and 40 percent in bonds, and suggest replacing bonds with alternative investments for diversification.

    The reality is that we don’t know what future bond yields will be. Before declaring death for bonds, it might be a good idea to unpack the statements above and separate the myth from the reality.

    [Read the Full Article]

    Following financial advisor blogs is a great way to access valuable, educational information about finance – and it won’t cost you anything! Our financial planners are happy to share their knowledge and help everyone, regardless of age or wealth.


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