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Bond Investing Basics: Types, Yields & When to Buy
Understand government, corporate, and municipal bonds — yields, duration risk, and role in a portfolio.
July 9, 20267 min readBy MyWealthForge
Key Takeaways
- 1Bonds are loans to governments or corporations — you earn interest.
- 2When interest rates rise, existing bond prices fall.
- 3Duration measures interest rate sensitivity — longer = more risk.
- 4Bonds reduce portfolio volatility near retirement.
Bonds provide income and stability but behave differently from stocks — especially when interest rates move.
Factor inflation into real bond returns.
Main Bond Types
Treasury bonds: US government, lowest default risk. Corporate: higher yield, more risk. Municipal: often tax-free.
Bond funds diversify better than individual bonds for most investors.
Bonds in Your Portfolio
Increase bond allocation as you approach retirement. 60/40 (stocks/bonds) is a classic balanced mix.
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