Schwab Center for Financial Research: Become more informed with insights and ideas.
Stay at the forefront of modern investing with insights and ideas from Schwab experts, including Kathy A. Jones, Senior Vice President and Chief Fixed Income Strategist, Schwab Center for Financial Research.
Review commentary on issues facing today’s investors, like:
- Bond Market Outlook: Higher Rates and Known Unknowns
by Kathy A Jones
December 01, 2016
The incoming administration’s proposals for taxes, spending and trade could create waves in the bond market. Caution may be in order.
Muni Bonds: Making Sense of the Post-Election Landscape
by Cooper J Howard and Rob Williams
November 22, 2016
The potential for lower taxes and an increase in infrastructure spending could hurt muni prices in the short term, but we still feel they can make sense for high-income earners.
- Tweets by @KathyJones
Why invest in fixed income investments?
Whether your goal is to diversify your investments, save for the future, receive dependable income, or minimize taxes, fixed income investments may have a place in your portfolio.
Adding investment-grade bonds to a stock portfolio can help lower the portfolio's volatility over time.
Research shows that since 1976, negative annual returns have been uncommon in a broadly diversified bond portfolio.
Receive dependable income
Fixed income securities are typically designed to provide a regular stream of interest payments. See how bonds pay income.
Gain potential tax benefits
Many bonds have preferential tax treatment under which coupon payments are tax-free at either the federal or state level, or both. So it’s important to know how tax treatment varies by bond type.More Reasons to Invest in Fixed Income
Easily find and manage your fixed income investments.
Avoid the 3 most common errors investors make.
Keep your bond strategy on course by understanding the most common errors investors make and how to best avoid them:
- Chasing yield
- Buying and forgetting
- Failing to diversify
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1. As of January 2016.
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3. Availability on Schwab BondSource as of January 2016.
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Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.
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This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.