When should you buy bonds?
1. Bonds are a good option for those who need a steady and relatively dependable source of income, including the elderly and disabled. After retirement, bonds will provide a regular interest check to live on.
2. As you progress from middle age and get within a few years of retirement, you should start gradually switching your assets from equity holdings (stocks) into bonds. As you get closer to retirement you want to reduce your investment risk.
3. Many people buy bonds for reasons other than the investment potential. For example, the alumni of a university might buy the school's bonds to help out the old alma mater. And many people consider buying US Savings Bonds to be a patriotic duty.
