Category: Credit Investing
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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What Are Municipal Bonds?
If you’re looking into investment options, you’ve likely come across municipal bonds. Municipal bonds are debt securities issued by state and local governments to finance public projects like roads, schools, and hospitals. They are appealing to many investors because of their tax advantages; interest earned on these bonds is often exempt from federal income tax…
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Do I Bonds Fit Into Your Portfolio in 2024? Assessing Inflation-Linked Savings Bonds
Check out our 2025 I Bond post for more insight on inflation and if I Bonds are something you should consider. Assessing the role of I Bonds in your investment portfolio in 2024 is a significant consideration, particularly in an economic climate characterized by uncertainty. These bonds are specifically designed to protect against inflation, which…
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What Are Defensive Investments That I Can Add to My Portfolio?
When market volatility is high, it’s crucial to know how to protect your portfolio. Defensive investments can help you achieve this goal by reducing overall risk. These investment types aim to provide steady returns or reduced volatility even during uncertain times. Defensive investments often include stocks from well-established companies, treasury bonds, ETFs focusing on stability,…
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What is Interest Rate Risk and Why is it Important?
Interest rate risk is the possibility that changes in interest rates will negatively affect the value of your assets or portfolio. This risk can impact both borrowers and investors, leading to losses when unexpected fluctuations occur. Imagine you have investments in bonds; if interest rates rise, the value of your bonds might decrease, as newer…
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How Do Zero-Coupon Bonds Work?
A zero-coupon bond is unique because it doesn’t pay periodic interest. Instead, you buy the bond at a discount and receive its full, face value at maturity. This difference between the purchase price and the face value represents your profit. This makes zero-coupon bonds an attractive option for investors looking for long-term growth without worrying…
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Why Exposure to Private Markets Provides Better Portfolio Performance
Investing in private markets can significantly enhance your portfolio performance. Private markets offer diversification and can provide resilience during market downturns. By allocating assets into private equity, private debt, and real estate, you tap into sources of return less correlated to the public markets. Exposure to private markets enables you to optimize performance while managing…
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How Does Bond Laddering Work?
Investing wisely in fixed income can be challenging, especially in fluctuating markets. Bond laddering offers a strategic way to manage your investments by staggering the maturity dates of multiple bonds. This helps you achieve regular income and risk management by holding bonds until they mature. Imagine having a series of bonds that mature at different…
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How Do Bonds Work: An Investor’s Guide to Debt Securities
Bonds act as loans that investors provide to governments and corporations for funding, in return the investor receives a (most often times) fixed rate of return on their capital. When an entity issues a bond, it is essentially borrowing funds from the bondholder and in return provides them with periodic interest payments. At the end…