Bond Investing: Don’t Overlook These 3 Important Factors

Did you feel shocked when you looked at your bond investments in 2022? You were not alone! Interest rates rose substantially, which caused prices to fall quickly.

Bonds, like stocks, have factors that affect their returns. Investors need to consider credit quality, term, and liquidity when purchasing fixed income securities.

Central to bond investments is that investors are lenders. Therefore, they expect to receive their investment back with interest paid in addition. Term, credit quality, and liquidity each affect the return on investment that investors can expect from their bond investments.

Join us as we explore the factors that affect bond returns.

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This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.