This Surprising Bond Investment Has Some Smart Benefits

Retirement investors need to focus on growth in their investment portfolios, but it's important to have some less volatile investments. Yet with bonds having offered poor interest rates lately, it's been hard for retirement investors to find the returns they'd like to see.

In the following video, Motley Fool investment planning editor Lauren Kuczala talks with longtime Fool contributor and retirement expert Dan Caplinger about looking at savings bonds as an income-producing investment. As Dan notes, although most bond investments face the potential for dramatic falls in price if interest rates rise, savings bonds are guaranteed not to lose value regardless of what happens with rates. Moreover, with valuable features like inflation-tracking, certain types of savings bonds will help you preserve the purchasing power of your investment. Dan runs through what you need to know about savings bonds, including annual limits and other features that you should be aware of before choosing whether to use them as part of your overall retirement investing strategy.

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  • Report this Comment On August 11, 2014, at 9:32 AM, Babcockk1 wrote:

    Good article, but now recommend something other than losers. Bonds, CD's, MM Funds, US Savings Bonds, that's old school, and do nothing but lose money if you take inflation in the equation. What's safe about that? There is imperial evidense, historical data of great paying dividend stocks, by using a Stop Loss that is how I plan on making money and protecting my investments. I don't want advise that losses money or someone who recommends using Annuities as a source of income. I wish to see your authors address my comment? Prove me wrong, please.

  • Report this Comment On September 30, 2014, at 10:58 AM, jomaco wrote:

    Waiting with you for further clarification?

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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