IFB139: Beginners Guide to Investing in Bonds

Announcer (00:00):



You’re tuned in to the Investing for Beginners podcast.
Finally, step by step premium investment guidance for beginners led by Andrew
Sather and Dave Ahern. To decode industry jargon, silence crippling confusion,
and help you overcome emotions by looking at the numbers, your path to
financial freedom starts now.



Dave (00:36):



All right folks, welcome to Investing for Beginners
podcast. This is episode 139, tonight, Andrew and I are going to have a little
discussion back and forth. We’re going to talk about bonds, so I’ve written
three blog posts over the last week or so about bonds and the different aspects
of them, the different kinds there are and kind of the ins and outs of them,
and Andrew and I thought that too actually. Andrew thought that this would be
an interesting conversation for us, and he thought he could maybe ask me some
questions and see what I could do to help people learn more about this
particular asset class. This is something that’s not talked about a lot. It’s
certainly not taught in schools and most people are very unfamiliar with bonds
and how they work. And as we know, if you’re unfamiliar with something, it can
be a little bit scary or overwhelming. So we hope we can help illuminate this
asset class a little bit more and give you some insights. And if this is
something that you’re interested in learning more about, we’re here to help
you. So without any further ado, I’m going to turn over my friend Andrew and
he’s going to grow me with a lot of really hard questions. So fire away.



Andrew (01:42):



I’m not going to put you into the grill, not today. Maybe
we’ll say that for another episode. Yeah, you wrote three great posts on the
blog, and I think if people hear our conversation and they’re interested in
getting down to the nitty-gritty, I suggest breeding those. You know, it’s
spaced out in the publishing schedule. But really if you go on the website,
investing for beginners.com you go to the search bar, you type in bonds and
you’re going to talk about several different types of bonds. And I think that
will be very helpful. So if you have like, let’s say you want and learn more
about municipal bonds, you could type that into the search, the search bar, and
you’ll see Dave’s masterpiece on there. These in-depth guides and those can be
very, very helpful.



Andrew (02:30):



But first, before we get into all of that, let’s talk
about maybe why bonds are, what kind of investor would find it attractive? I
think not only, you know, I think when we think of bonds in general, but you
also start to think of people who are in retirement or close to retirement. And
there are good reasons for that because we’ve talked in the past how the stock
market over the very, very longterm, it’s,