You can buy government bonds and corporate bonds from your broker or at Treasury Direct. However, buying bonds through a broker has a few disadvantages. For starters, you may have to pay a brokerage fee, which could add to your bond investment costs. Besides, it is important to look for publicly available data to compare similar bonds. The Financial Industry Regulatory Authority tracks activity in the bond market, and you should always check it before making a purchase.
Another drawback to bonds is that you have to hold them for a long time. While stocks are volatile, bonds are less volatile. As you approach retirement, you might not have the time to ride down the stock market, so you should invest in bonds instead. As a rule of thumb, most people are advised to switch from stocks to bond investments as they age. But there are a few factors to consider before buying bonds. Here are a few tips to avoid losing money on your investment.
First, make sure to choose your investment purpose. You may want to buy a bond that pays interest. You can choose a bond with a long term or short term. For example, if you want to invest in a company, you may want to consider a bond that will pay dividends, or one that will pay interest. If you are investing in a government bond, you should buy it through a bank.