By Scott Krasese via Iris.xyz
Do You Use Bond Funds For Income? Do You Really Think They’re Safe?
Do I really want to read about losing money? YES! This article is how to potentially avoid losing money, especially if you are approaching retirement or you are already retired.
The problem is most investors think “I’m ok” or “If interest rates go up it won’t really affect me, so I’m ok”.
Well, guess what, do you even remember the #FinancialCrisis of 2008?
Bond Funds and Income Funds
What is a bond fund?
“Bond funds” and “income funds” are terms used to describe a type of investment company (mutual fund, closed-end fund or unit investment trust (UIT)) that invests primarily in bonds or other types of debt securities. Depending on its investment objectives and policies, a bond fund may concentrate its investments in a particular type of bond or debt security—such as government bonds, municipal bonds, corporate bonds, convertible bonds, mortgage-backed securities, zero-coupon bonds—or a mixture of types.
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