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Money Rehab with Nicole Lapin

“How Do I Invest in Bonds? Help!” (Listener Intervention)

Money Rehab with Nicole Lapin

Money News Network

Self-improvement, Education, Business

4.61.7K Ratings

🗓️ 9 August 2024

⏱️ 21 minutes

🧾️ Download transcript

Summary

Today Nicole talks to a Money Rehabber who has never invested in bonds… and isn’t sure if she should. Nicole explains how bonds work, what they offer, why bonds are at stellar rates right now— and even takes the listener through the steps of buying a bond. If you want to follow along at home and explore bond offerings on Nicole's favorite platform, go to public.com/moneyrehab All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Brokerage services for alternative assets are offered by Dalmore Group, LLC, member FINRA & SIPC. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1828849), which is licensed to engage in virtual currency business activity by the NYSDFS. Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrency holdings are not protected by the FDIC or SIPC. Brokerage services for treasury accounts offering 6-month T-Bills are offered by Jiko Securities, Inc., member FINRA & SIPC. Banking services are offered by Jiko Bank, a division of Mid-Central National Bank.  Fractional Bonds are offered by Public Investing. They are exposed to various risks typical of bond investments, including liquidity risk, interest rate risk, credit risk, inflation risk, and potential tax liabilities. Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. The value of these investments may be less than the original cost at the time of redemption. Typically, bonds with higher risk yields carry greater risk of default. Fractional Bonds are only bought and sold by a single market participant, Moment Markets. Bonds may be available from different brokers or dealers at prices different than those displayed. All prices are subject to change without prior notice. Public Investing earns a fee on every fractional bond trade. Trading 6 Month Treasury Bills through Fractional Bond investing offered by Public Investing is separate from the Public Treasury Account offered in partnership with Jiko. See risks: https://public.com/disclosures/apex-fractional-bond-disclosure  Securities investments: Not FDIC Insured; No Bank Guarantee; May Lose Value. See public.com/#disclosures-main for more information. *APY as of 6/20/24, subject to change.

Transcript

Click on a timestamp to play from that location

0:00.0

I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand.

0:06.3

It's time for some money rehab. Well, every investing portfolio is different. At the most zoomed out view, most portfolios are just a mix of stocks and bonds but what that mix should be depends on your

0:26.5

financial picture and your financial goals today I'm talking to a very very very special guest, Morgan, our producer. Morgan has never invested in bonds and isn't sure if she actually should, even though she's been listening to many, many episodes about them.

0:44.0

I give her the framework to allocate her portfolio that you can use two,

0:48.0

plus we also go through steps of buying a bond together.

0:52.0

So if you're a bond newbie as well or if you just want to learn my favorite way to buy bonds, you can follow along. So let's get into it. Morgan, very excited to say, welcome to money rehab.

1:04.1

Thank you so much happy to be here.

1:07.3

Long time listener.

1:09.9

A second time caller?

1:11.6

I don't know. Third time caller? was to say I think more than that.

1:14.8

Are you ready to talk about bonds? I think so. Yeah, bon girl. All right, before we dive in,

1:20.3

I actually want to test a theory that I have.

1:23.0

What do you think when you think about bonds?

1:27.0

So I have heard you talk about bonds,

1:30.0

but I just think that they're so boring like I when I picture a bond I picture the Treasury bonds I think that or or I bonds or gift I don't know bonds that my grandfather gave me like when I was born that haven't even matured yet and they're worth

1:50.0

maybe like $50 and I just remember learning that I had gotten them because I was really I was a baby, the small wee baby when I got them from him.

2:01.0

But then learning that I had these, I was like, okay, wish it was like a bike or an ice cream cone, but okay.

2:08.8

Just boring.

2:09.8

It's a more time, Morgan, you are 12 years old, so give it a few more years but yes you are totally

2:16.2

proving my theory here bonds have gotten the worst wrapped in recent years but truly it is my

2:22.2

mission to bring some sexy back to bonds because every expert

2:26.0

will tell you that bonds are a critical part of any investor's portfolio. So have you invested in any kinds of bonds before? It sounds like Grandpa has, but you haven't.

...

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