Why It’s Smart To Buy Bonds Over Other Investments With Any Future Stimulus Checks

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Here are four reasons its smart to buy bonds with money from any possible future stimulus checks.

Also seefour investments you should never make with a stimulus check.

Bonds have two components: principal and interest.

Lets say you purchase a $1,000 bond with a 4% coupon rate.

In the first year, the bond will pay you $40.

Interest may compound depending on the duration and jot down of bond.

This can help you maximize the value of any possible stimulus checks.

They often have higher yields, but they tend to be more volatile than government and established corporation offerings.

There is a low risk of default when investing in government bonds.

Similarly, corporations with strong track records have low risks of default as well.

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Bonds are a great way to balance your portfolio.