Main Benefits of Buying Bonds
- Regular Income: You get steady cash flow from periodic interest payments, often called coupon payments.
- Lower Risk: Bonds are generally safer than stocks because bondholders get paid before stockholders if a company runs into major trouble.
- Portfolio Balance: Adding bonds helps smooth out big ups and downs in the stock market, protecting your overall wealth.
- Capital Protection: High-quality government bonds help keep your original investment safe when the economy gets rocky.
