Bonds can be an important part of a diversified portfolio and are typically used for income generation and can provide for some capital preservation as well. We offer a comprehensive array of bond investments, including U.S. government bonds, zero coupon bonds, CDs, corporate bonds, and tax-free municipal bonds from all 50 states. You can also invest in bonds through bond mutual funds – compare individual bonds and bond funds.
How Know-how Can Help
You give us your bond parameters, or we can help you determine the right type of bond investments. Either way, you’ll get straightforward recommendations to take advantage of the world of fixed income investments.
For the time being, U.S. interest rates remain low and well below historical long-term averages. However, at some point interest rates will rise, which will negatively impact investments in bonds and bond mutual funds. With current bond rates this low and the economic outlook still uncertain, we believe that there could be increased volatility in the bond market with the potential for moderate to significant declines in the value of fixed income assets. While bonds are an important part of an investment portfolio where income is a goal, they should not be relied upon to generate growth of principal, which has been the case for many funds over the past decade. Learn more about the risks of bond investments.
We believe that appropriate asset allocation can help offset some of these risks. If you have a significant percentage of your investment assets in fixed income, let’s discuss your portfolio to see if your current asset allocation remains appropriate for your personal goals, tolerance for risk and investment time frame. If necessary, we can help you make adjustments. Call us today at (800) 392-3009 to schedule an appointment with a Financial Advisor or visit a People’s United branch.