Chapter 12

For Your Interest: The World of Bond ETFs

In This Chapter

arrow Examining the rationale behind bond investing

arrow Recognizing different kinds of bonds

arrow Appreciating the risk that bond investing entails

arrow Selecting the best — and avoiding the worst — bond ETFs for your portfolio

arrow Knowing how much to allocate

I love inline skating. Sometimes, I admit, I take to the Pennsylvania hills a bit too fast. There’s just something about the trees racing by and the wind in my face that I can’t resist. Whoosh!

On occasion, I hit a bump, or some tiny woman in a monster SUV who can barely see over the steering wheel (they’re all over my neighborhood) cuts me off and I crash to the pavement. But thanks to the heavy black plastic armor that covers my knees, elbows, wrists, and head (just call me the Black Knight of Wealth Management), I’ve never been seriously injured.

Bonds are your portfolio’s knee and elbow pads. When the going gets rough, and you hit the big bump (by any chance, do you remember 2008?), ...

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