Retirement & Financial Planning Report

As the stock market rides it roller coaster, it might to you well to add some less volatile instruments to your portfolio, such as A-rated corporate bonds with maturities around 10 years. Such bonds offer an attractive risk-reward relationship, especially if you plan to hold these bonds until maturity rather than engage in active trading. They now yield around 200 basis points (two percentage points) more than Treasuries, so investors can buy 10-year issues from companies such as AT&T that yield about 7.8%. You should buy noncallable bonds, locking in the yield until maturity. If you do decide on callable bonds, try to buy at a discount so you’ll have gains if the bonds are redeemed prematurely.