How to Buy Individual Bonds
A TOOL KIT
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. This distinguishing characteristic is a key ingredient in many aspects of financial planning. Need a large chunk of cash for a tuition payment on December 15, 2021? Buy a bond that matures on December 1, 2021. Planning to retire? Buy a continuing series of bonds so you may have principal available when needed. Looking for portfolio growth? Reinvest the interest payments. The reasons to buy individual bonds are compelling.
A frequent question investors ask is, how do you choose between buying bonds and bond ...