Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What are bonds?
Bonds are loans you make to governments or corporations. In return, you receive interest payments and the return of principal at maturity. Bonds are generally less volatile than stocks and provide income.
What types of bonds are available?
Common bond types include Treasury bonds, corporate bonds, municipal bonds, and international bonds. Each has different risk and return characteristics. Treasury bonds are considered the safest.
How do bonds fit into my portfolio?
Bonds can provide stability and income, balancing the volatility of stocks. The right allocation depends on your age, risk tolerance, and goals. As you approach retirement, increasing your bond allocation can reduce risk.