Bonds, otherwise known, as “fixed income”, is an important part of nearly every well-diversified portfolio. Bonds contrast from stocks in the fact that bonds are when you “loan” your money, and stock are when you “own” a piece of a company.
The phrases “financial planning”, “family finance” and “estate planning” are ones we hear often in the media. There always seems to be one expert or another touting their wisdom or promoting an idea or product. Much of the information out there seems to be contradictory. However, there are some basic truisms in finance, and that is what I will focus on in this chapter.