Posts Tagged ‘Bond Investing’

Happiness Is a Reliable Income Source

Sunday, June 6th, 2010

The content of human happiness is a subject for never-ending speculation and wonder. One aspect of this picture seems to have clarified, however. Retirees consistently say that they are happier when they have a reliable source of income than when they don’t.
Unfortunately, retirement is, by definition, that time of life when earned income ceases. How, then, should a prospective retiree find a reliable income source?
What is a Reliable Source of Income, Anyway?
Surveys of retirees are valuable but potentially misleading. Reactions to the phrase “reliable source of income” will vary not only because people have different needs for security and growth, [...]

Why Do Funds Make Stocks Safer, But Bonds Riskier?

Tuesday, March 16th, 2010

Suppose you had $100,000 to invest in the stock market. How would you go about it?
Stock Investing: Diversification is the Name of the Game
For decades, the orthodox advice to average investors has been to put the money in one or more mutual funds. And sound advice it is, too. Putting the money in the stock of any one company – no matter how sound, no matter how “hot,” no matter how currently profitable – would be the wrong thing to do. Any information affecting the company’s future stock price is already reflected in its price, which means that changes in [...]

How is the Municipal Bond Market Like the Grocery-Checkout Line?

Sunday, February 14th, 2010

Bonds are big these days. They’ve always been big among fixed-income investors – older people who have begun to prize the return of their money more than the return on their money, in Will Rogers’ immortal phrase. These security-conscious people are also the same kind of people who buy annuities. Nowadays more people are thinking about safety in investments than at any time in living memory.
Municipal Bonds – a Paragon of Bond Safety
Municipal bonds enable cities and states to borrow to finance big projects like roads and bridges. Sometimes municipal bonds are backed by the general revenue collected by the [...]