Close

How to Buy Individual Bonds: A Fixed-Income Toolkit

by Stan Richelson and Hildy Richelson

How To Buy Individual Bonds: A Fixed Income Toolkit Splash image

Once you’ve learned about bond basics and reviewed the vast number of bond choices, you’re ready to make decisions on how to invest your funds in bonds. Basically, you have two choices: You can purchase individual bonds, or buy them packaged together as funds. Both choices offer certain advantages.

The most compelling reason to buy individual bonds is that bonds come due at a defined time. Unlike bond mutual funds of any kind, individual bonds pay their face value in cash at maturity.

Need a large chunk of cash for a tuition payment on the 15th of December 10 years from now? Buy a bond that matures on December 1, 2017.

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Register for FREE
to read this article and receive access to future AAII.com articles.

Log in
Already registered with AAII? Login to read the rest of this article.
  
Stan Richelson is a representative of Scarsdale Investment Group, a registered investment adviser based in Blue Bell, Pennsylvania, that specializes in fixed-income investments. Stan and Hildy Richelson are co-authors of several books on bonds, including “Bonds: The Unbeaten Path to Secure Investment Growth,” Second Edition (Bloomberg Press, 2011).
Hildy Richelson is president of Scarsdale Investment Group, a registered investment adviser based in Blue Bell, Pennsylvania, that specializes in fixed-income investments. Hildy and Stan Richelson are co-authors of several books on bonds, including “Bonds: The Unbeaten Path to Secure Investment Growth,” Second Edition (Bloomberg Press, 2011).


Discussion

Leonard i from New York posted over 3 years ago:

Excellent presentation clarifying some arcane practices.


William from New Jersey posted over 3 years ago:

Thorough and informative. This information
will help individual buyers avoid mishaps.


Joseph from Kansas posted over 3 years ago:

Good information for those new to bonds.


Russ from Illinois posted over 3 years ago:

A good primer on the mechanical side of bond purchasing.


You need to log in as a registered AAII user before commenting.
Create an account

Log In