Investing in Bonds
If you want to protect your principal and enjoy predictable returns on your money, bonds should be the largest part of your portfolio.
| The Difference Between a Bond Ladder and a Mutual Fund of Bonds April 8, 2009
Since bonds are such an important part of any predictable, secure portfolio, it is crucial for you to understand the difference between a mutual fund of bonds and an actual bond ladder. Most people own mutual funds of bonds because doing so is simple and because their broker recommended them. All brokers -- the regular guy at Edward Jones, the faceless bureaucracy at Charles Schawb, the expensive suit at Morgan Stanley -- earn a nice income from the mutual funds they sell you. They earn a lot less if they create a ladder of actual bonds. But a real bond ladder has truly significant advantages over a mutual fund. |  |
| Types of Bonds April 2, 2009
Broadly speaking, there are bonds that are issued by governments and there are bonds that are issued by corporations. Within those two categories are several sub-categories. Each type of bond offers advantages and disadvantages, and so they serve different purposes. The Lombardo Letter will guide you through the process of managing your bond portfolio to suit your needs. We will make specific recommendations as new bonds become available, so you won't need to do the research yourself. This is one of the most valuable features of the Lombardo Letter. |  |