Radio Transcript, 60 seconds, for use during week
of October 22.
This is an Invest Wisely minute brought to you by Iowa State
Investing in bonds can help you diversify your portfolio. You
are a lender. You loan your money to a government entity, corporation,
or a financial institution and receive regular interest -- either
semi-annually, annually, or when you redeem the bond.
Risk with bonds can be minimized. For example, don’t
buy bonds with long maturities when interest rates are low. Stick
to short-term bonds that mature in 3 years or less or intermediate-term
bonds that mature in 3 to 20 years. Purchase bonds with different
Other tips for reducing risk -- Diversity across different bond
issuers. And check the credit worthiness of the bond issuer.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.