Fixed Income Overview

Why bonds?

At Raymond James, we believe that bonds can play an important role in a well-diversified portfolio. Bonds may provide predictable income and, most importantly, principal protection.* Additionally, bonds may help minimize overall volatility.

Who invests in bonds?

Bonds can benefit an investor’s portfolio in a variety of ways. For retirees, bonds may provide a predictable income stream and safety of capital. For other investors, bonds can help meet future obligations, such as vacations, college funding or the purchase of a house.

How much to allocate to bonds?

Bond allocation depends on many factors, including an investor’s time horizon, risk tolerance, need for income and future goals. In most cases, as investors’ age, they grow more dependent on income from their portfolios and become more risk averse. Bonds can help ease specific concerns that arise when investors move from one stage of their financial journey to the next. Consult your financial advisor to determine what portion of your portfolio should be devoted to bonds based on your specific investment objectives.

*If held to maturity, subject to issuer credit risk.

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