Phillip Cannella Media: Phil Cannella Reveals Why Bonds Are Actually Risk Investments


Phil Cannella – Phillip Cannella Media: Phil Cannella delivers financial answers to numerous questions about safeguarding your retirement. In this article, he reveals why bonds, which are one of the most popular methods retirees use to keep money “safe,” are bad ideas for retirees.

 

Many people add bonds to their portfolio to offset potential market downturns, however bonds were designed to provide a fixed income not to offset market risk.  The income comes from the fixed interest rate or yield of your bond. While the interest rate is fixed, the par value (principal) is not and it fluctuates per the interest rates set by the Federal Reserve.

 

There are many financial advisors who consider bond accounts to be crash proof, but Phil Cannella points out that recent history has proven that theory wrong since they do fall, and when they do, they often fall hard.

 

Plus, the income from a bond yield is taxable, which means that if you reinvest the bond yield into more bonds or any other investment, you’re paying taxes on money you’re not even pulling out, much less spending.

 

Another important factor to consider is that if a company that issues a bond goes belly up, you’ll be standing in line with all the other creditors waiting to get paid on your bond. And remember that the higher the yield of the bond, generally the higher the risk that it will default.

 

In summary, Phil Cannella wants you to remember that bonds are risk investments, end of story.

 

Learn more by visiting Phil Cannella’s website: http://retirementmediainc.com; his blog: http://crashproofprinciple.com; and by tuning into his Crash Proof Retirement Show®.

 


One thought on “Phillip Cannella Media: Phil Cannella Reveals Why Bonds Are Actually Risk Investments

  • Phil Cannella

    Phil Cannella – Champion of Consumer Advocacy
    With the uncertainty and volatility of the market, Phil Cannella, with First Senior Financial Group, prides himself on ensuring a safe retirement future for senior consumers. With an unparalleled devotion to educating seniors, Phil Cannella works endlessly to know and understand the ever changing tax laws and economic changes that can adversely affect one’s nest egg. Thousands of senior citizens have gone through First Senior Financial Group’s education process and learned how to have up to an 85% tax free retirement income.
    As if that isn’t reason enough to respect Phil Cannella, the truly amazing thing about how he runs First Senior Financial Group is that he never takes a dime from the seniors who come to him to be educated. Everything he teaches and everything he offers comes free of charge. That is the true mark of a consumer advocate, someone who cares enough to help you without asking for anything in return.
    http://www.philcannellaiii.com/

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