This Element is an excerpt from Higher Returns from Safe Investments: Using Bonds, Stocks, and Options to Generate Lifetime Income (9780137003358) by Marvin Appel. Available in print and digital formats.
Using low-cost bond index funds to outperform most bond investors
You might be overwhelmed by the hundreds of different individual bonds available, or you might not have a broker you trust, or you might not have enough money to buy a diversified portfolio of individual bonds. Don’t despair: Bond mutual funds can come to your rescue. By investing in a low-cost bond index fund, you can outperform most bond investors.