Managing Your Financial Future with Lucia Capital Group

Why Bonds Are Not the Simple Assets They Appear to Be

Lucia Capital Group Episode 238

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0:00 | 35:55

You're probably familiar with bonds as an asset: you make a loan to a company or state or municipality, and you hope to be paid back over time with interest and, ultimately, your principal.  And while that is the most basic definition, the real working of bonds and the bond market are far more complex.

Underneath the surface, there are many things that are important to consider: the bond’s current yield, and more importantly, the bond’s yield to maturity, the difference between the bond’s present cash flow and what you’ll ultimately receive after all interest and principal payments are made, as well as many other factors.

Sound confusing? Let’s clear it up.  Tune in to today’s episode of Managing Your Financial Future as podcast host Johnny Dean and “Professor” Rick Plum, CFP® tell you what you need to know before – and after – you purchase your bonds!