Bonds vs Bond Mutual Funds

Since many of today’s advisors got into the business during the 1980s and 90s, in what was the best stock market in U.S. history, most have become stock market specialists. Frankly, if they do fixed income, it’s usually an afterthought, and most will simply take the easy way out and invest their clients’ money in bond mutual funds. What many people don’t realize is that bond mutual funds carry risks, costs, and tax implications that can be reduced, or even eliminated, by investing in a diversified portfolio of individual bonds, or other fixed-income securities.

That’s because when an investor buys an individual bond, they have two important guarantees. First, they’re guaranteed a fixed rate of interest for the life of the bond. Secondly, when the bond matures, they’re guaranteed their principal back – assuming there have been no defaults. With that assumption, an investor knows exactly what they’re going to earn on the bond that they hold to maturity, they know at what date it will mature, and they know the name of the company they are invested in.

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STRIDE Financial is a full service financial services brokerage specializing in comprehensive, holistic financial planning, and offers a complete line of financial services and products for families and businesses - including retirement planning, college planning, estate planning, business planning, life insurance; annuities; health insurance; property and casualty insurance; long term care insurance; disability insurance; and investment advisory services. This presentation is for informational purposes only and is not intended to be a solicitation, offering, or recommendation of any security. Although this presentation may include investment-related information or opinions from its presenters, you should not consider anything you find in this presentation to be a recommendation that you buy, sell, hold or otherwise invest in an individual security, or any other investment or asset. This presentation does not intend to provide investment, tax, or legal advice. Investment Advisory services are offered by STRIDE Investments, LLC. Additionally, STRIDE Investments does not represent that any securities, products or services discussed in this presentation are suitable or appropriate for all investors. 

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Copyright © 2022 STRIDE Financial. All Rights Reserved.

Investment Advisory Services offered through Sound Income Strategies, LLC, an SEC Registered Investment Advisory Firm. STRIDE Financial and Sound Income Strategies, LLC are not associated entities. STRIDE Financial is a franchisee of The Retirement Income Store®, LLC. The Retirement Income Store®, LLC and Sound Income Strategies, LLC are associated entities.

A franchise of The Retirement Income Store.