A solid asset allocation strategy often includes investments from a range of investment classes, the broadest of which include stocks, bonds, and cash. Investing in bonds can be an important element in your investment portfolio, helping to potentially:
- Reduce fluctuations in the your portfolio value
- Enhance investment income
- Prepare for future expenses
Investing in bonds can help achieve many different investment goals, including income generation, portfolio diversification even growth.
Enhance your Financial Portfolio
The bond market offers many choices, so it’s important to have a clear picture of your goals before you begin selecting individual bonds to invest in. A comprehensive financial plan helps you to Construct a lifelong cash flow forecasts, showing all the money you will receive and all the money you will spend in your lifetime. The cashflows use prudent assumptions to protect against inflation and uses realistic returns.