Bond Investing For Dummies, 2nd Edition

Your friendly guide to navigating the bond and bond fund market

Bonds and bond funds can be among the safest and most reliable investments you make to ensure an ample and dependable retirement income — if you choose wisely! This plain-English guide explains the pros and cons of investing in bonds, how they differ from stocks, and the best (and worst!) ways to select and purchase bonds.

• Bond appetit — get a crash course on what makes a bond a bond, how they're bought and sold, and how they're rated
• Not your grandfather's bonds — discover the advantages and potential drawbacks of bonds issued by the U.S. Treasury, corporations, government agencies, municipalities, and other (sometimes more exotic) entities
• To risk or not to risk — assess just how much investment risk you should be taking and how — by using a mix of bonds — you can minimize that risk for optimal return
• Bonds away — grasp the role of bond brokers, get the scoop on researching bond prices and true yields, and find out how to avoid getting stuck with fixed-income rip-offs
• Protect your bond nest egg — find out if your bond portfolio is enough to replace your paycheck — and pare down or beef up your fixed-income allocation accordingly

Open the book and find:

• The key reason to invest in bonds or bond funds
• An introduction to Treasuries, corporate bonds, and more
• The science of portfolio building
• Guidance for making the right bond selections
• The 4-1-1 on interest and taxes on interest
• Tips for working with a bond broker or agent
• Common misconceptions about bonds
• A helpful Q&A with bond fund guru Dan Fuss

Learn to:

• Buy and sell bonds and bond funds
• Measure bond returns and risk
• Diversify your portfolio
• Avoid common investing mistakes