When you invest in bonds you are lending your dollar. Lending your dollar means to give your dollar to an entity that will pay you interest on your dollar for a specific length of time. The basic concept that bond investors must understand is how bonds fluctuate in value. When interest rates go up the value of bonds you hold goes down & when interest rates go down the bonds you hold go up in value. Today, interest rates are being kept at very low levels by the Federal Reserve policies. There will come a time when the Federal Reserve will not be able to hold interest down. They are sitting on a very tightly coiled spring (interest rates), when the Fed starts to release this coiled spring rates will rise very fast causing large losses in bond portfolios.
Investors should make sure portfolios are not over weighted in bonds. Not sure about your portfolio? Be sure to bring this up with your investment advisor. For more information on investing in bonds, portfolio management or for other financial advice, speak with an investment advisor at DLG Wealth Management today, located in Albany, Saratoga or Utica NY.
For more Money Monday segments, visit DLG Wealth Management's News page.
- STOCKS SPLITTING: WHAT DOES IT MEAN? DLG Wealth Management Weighs In On When Stocks Split and What You Should Know
- Are You Nearing Retirement? Here Are A Few Tips To Keep In Mind
- Student Loans - Major Problems Students Have To Face
- There's No Secret Here. Department of Labor Makes Big Changes to 401K Plans
- Managing Director of DLG Wealth Management Weighs In On Capital Region Housing
- 2012 Investment Camp Was A Great Success!
- The Importance of a Mid-Year Financial Checkup
- The Perfect Storm
- Third Annual Summer Investment Camp, July 2
- The Truth Behind Facebook's IPO
- ASSET ALLOCATION (5)
- college savings plan (2)
- DIVERSIFICATION (1)
- dlg wealth management (8)
- Dow Jones (2)
- education savings plan (2)
- financial advisors (14)
- financial advisors albany (16)
- financial advisors albany ny (14)
- financial planning (11)
- high frequency trading facts (1)
- how to start a new business (1)
- investing (9)
- investment advisors albany ny (10)
- Is high frequency trading bad? (1)
- last minute tax tips (1)
- MANAGED FUTURES (1)
- managing student loans (1)
- portfolio management (9)
- portfolio management albany ny (6)
- portfolio management saratoga ny (5)
- portfolio management utica ny (3)
- preparing for college (1)
- private wealth management (10)
- retirement planning (1)
- rising gas prices (2)
- roth ira (2)
- saving for college (1)
- student loan debt (1)
- traditional ira (2)
- VARIABLE ANNUITIES (1)
- Wealth Management (12)
- wealth management advisor (16)
- wealth management albany (14)
- wealth management company (15)
- wealth management company saratoga (1)
- wealth management firms saratoga ny (15)
- wealth management services utica (12)
- wealth management services utica ny (1)
- what is high frequency trading (1)
- Which IRA to have? (1)
- why are gas prices so high? (2)
DLG Wealth Management provides an exclusive range of solutions engineered to meet your individual needs.
Retirement Accounts are savings plans that allow investors to increase the size of their savings for retirement while taking advantage of special tax benefits.
We have established relationships with a variety of Insurance and Annuity companies which allows us to find the products that meet our clients’ needs.