What should I consider when buying a bond?

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	What should I consider when buying a bond? By The-Adviser.com -
SERVICES Money Management Portfolio Reviews 401(k) Rollovers Retirement Financial Plans Estate Plans College Savings Ask The-Adviser Clients Only WHY US Benefits Available Services "Interview Us" Fee Information Disclosures Applications Clients Only THE COMPANY Background Philosophy The Press Policies Opportunities LINKS Home Page Related Links Stock Quotes	New York - There are several factors you should consider. Below are a few guidelines to keep in mind: Define your time horizon - You need to decide how long you would be willing to hold a bond. The longer a bond's maturity, the greater the risk. The reason is that if inflation rises, new bonds will pay higher interest rates than the one you just purchased; thus, if you need to sell your bond, you will have to lower the price of the bond to the buyer to compensate them for the difference. In general, short-term bonds with maturities of four years or less have the lowest interest rate risk. Intermediate bonds, with maturities of five to ten years have moderate risk and long-term bonds, with maturities over 10 years have more risk. Determine your income yield - You need to decide how much income you want and the risk you are willing to take to get it. Some bonds provide high yield while others provide low yield but carry lower principal loss risk. Determine quality of the backer - You should review who issued the bond and determine the credit worthiness of the bond issuer. Many individual use a bond rating company such as Moody's or Standard and Poors' and only buy high quality issuers. About Us The Independent Adviser Corporation is a 100% Independent and 100% Objective Financial Advisory Firm that writes buy-side investment research. Our network of independent Fee-Only Financial Advisers serves individuals, families and businesses. They provide financial planning services, tax advice and offer professionally managed asset accounts. They do not underwrite corporate securities nor do they sell any proprietary products. To find out more or get a FREE consultation Ask The-Adviser.com or call 1-800-ADVISER.	Laddering is a method to reduce the long-term impact of inflation. Got an investment question? Ask The-Adviser.com Open a professionally managed account: Brokerage Accounts Traditional IRAs Roth IRAs 401(k) IRA Rollovers 403(b) IRA Rollovers College Savings Retirement Savings Hire The-Adviser.com Click here for our Top Ten Investment Picks Financial Advisory Services Money Management Retirement Planning Portfolio Reviews 401(k) Rollover Assistance College Savings Financial Plans
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