This is Optimal Finance Daily, Episode 2377, Building a Diversified Bond Portfolio

by Robert Farrington of TheCollegeInvestor.com

and I'm your host and personal finance enthusiast, Diana Mariam.

Now let's get right to today's post and start optimizing your life.

Starting a Diversified Bond Portfolio by Robert Farrington of TheCollegeInvestor.com

Everyone has heard this saying, you need to diversify.

You hear about it for your portfolio as a whole, diversify in stocks and bonds.

There are even some handy simple calculations to figure out how to do it, subtract your

age from 100 and that's how much you should invest in stocks.

You also hear about diversifying your stocks, own different sectors or have an index fund

that owns the entire market.

What you don't always hear about is diversifying bonds.

However, if you're thinking about adding bonds to your portfolio, you should also be diversifying

your bonds.

There are many different types of bonds and they each act differently and have different

risks.

If you don't diversify your bonds through a total bond market fund, you should look at

holding different types of bonds in your portfolio.

Let's break it down.

The Different Types of Bonds

There are many different categories or types of bonds, just like there are various sectors

for stocks.

...