Before you add bonds to your portfolio, you should understand how they work and what variations exist among them. Just as importantly, you need to identify the risks that come with owning bonds and how you can protect yourself from them. Bond Basics Bonds are essentially IOUs, issued by federal, state, and municipal governments as […]
Investment
The Many Types of Investment Risk
It is important for investors to understand that every investment has its own set of risks. One key to successful investing is to recognize the different types of risks that could be a threat to one’s financial well-being and to take steps to minimize their impact. What follows is an overview of the primary forms […]
Diversification: A Tool to Temper Risk
Market volatility is a given in the investment world, so employing strategies to cope with fluctuating market values should be a priority. Diversification — spreading your money among many different investments and investment types — is one such strategy.1 Although you can’t eliminate volatility, diversifying your investment portfolio may help you manage it. A First […]