Rubino & Liang Wealth Partners

Should Bonds Still Have A Role In Your Retirement Plan?

With interest rates so low, is there still a role for bonds in today’s retirement portfolio? Traditionally, bonds were used in the past to mitigate risk while still providing yield to your portfolio, but are there other options for today’s environment?

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First – What IS a bond?

Often considered The “rock” when the stock market is going haywire, bonds are like “an I.O.U. between the lender and borrower that includes the details of the loan and its payments.”1

There are three main types of bonds:

  • Corporate bonds
  • Municipal bonds
  • U.S. Treasuries

(TIPS. Treasury Inflation-Protected Securities are notes and bonds whose principal is adjusted based on changes in the Consumer Price Index. TIPS pay interest every six months and are issued with maturities of five, ten, and 30 years.)

What is the purpose of a bond in your retirement portfolio?

  • Income generation
  • Capital preservation
  • Capital appreciation
  • Hedge against economic slowdown
  • Diversification

WHY are bond rates so low right now? What affects the price and performance of bonds?

Interest rate movements affect bond value/performance, but there are also three other factors that can affect the performance of a bond:

  • market conditions
  • the age of a bond
  • its rating

What are some alternatives that might be available to me, and how would I know if they are the right investment for my situation?

  • ETFs
  • Annuities (there are many kinds)
  • Business Development Companies (BDCs)
  • Precious metals (Commodities)
  • Structured Notes

Working with a financial advisor to help you understand what options what would be the best investment strategy help your probability of success in your retirement plan.

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Have a list of questions around your finances? Thinking about your retirement situation?

Let’s chat.

Let’s take some time to talk about the money obstacles you may be facing.

Whether you’re asking questions about when you can retire, how to manage your investments, or if you have enough to leave the impact you want for your family and community, we’re here to help.

Our 365 Retirement Plan Process is designed to create a personal relationship with our clients, taking the time to truly understand their unique personal and financial situation. Just as no two people are alike, we believe no two retirement plans should be, either. We take the time to create customized strategies to help our clients pursue their retirement goals.

Enter your email in the calendar below to find a time to schedule your 15 minute complimentary introductory call directly with either Sam, John, or Ryan of Rubino & Liang Wealth Partners. We’ll use this time to get to know you and your needs.



Thinking about your retirement situation?

Let’s chat. Find a time on our calendar to reserve a 15 min. phone call with either Sam, John, or Ryan - we'll use this time to get to know you and your needs and talk about the retirement planning obstacles you may be facing.

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