We need to talk about bonds more and understand them better. Almost everyone talks more about stocks. Stocks are in the news and get the headlines. Stocks are easier to understand. But bonds are an essential asset class in almost every investor’s portfolio. Fixed income grows in importance as investors grow older. For younger investors, bonds may still serve a purpose-either to fund a specific future cash need or to lessen portfolio volatility.
This article starts with a short primer on bonds and then explains how we at Robinson Smith Wealth Advisors construct bond portfolios and manage the associated risks.