The Basics of Investing, Part Three: Bonds and GICs
In This Chapter
• Types of bonds
• How bonds earn money
• The risks of bonds
• How to buy bonds
• Bond mutual funds and GICs
• The role of bonds in your retirement
In this third and final chapter that addresses various ways to invest your money for retirement, we take something of a different turn off the road we’ve been following. As you know, mutual funds and stocks represent a form of ownership in a company. You buy shares in hopes that, as the company prospers, so will your share of the pie.
Bonds and guaranteed investment contracts hold a different role in the investment world. Not to say they’re necessarily a better or worse choice than a form of equity investment but, rather, ...