The Risk of Long-Term Bonds in Your Portfolio

If bonds with longer maturities reward you with higher interest rates, why would you choose to exclude them from a diversified portfolio? Today, Paul expands on a video he made last week, “Why Use Bonds in a Portfolio?” and explains the risk of long-term bonds in your portfolio. Listen along as Paul explains why fixed-income investment like bonds get put in a portfolio and why the promise of higher interest rates and long maturities undermines the reason for owning bonds. Later in the episode, Paul shares an article that he sent to his team this week called “Financial Journalism Fails Its Readers.”

 

To learn more about the problems with indexing and why a structured approach to investing could be better for your financial future, sign up for our webinar here: Are Index Funds Delaying Your Retirement?