Bonds have long been considered a staple in investment portfolios, offering stability and income potential. However, recent market conditions have caused some investors to question the value of bonds in their portfolios. With higher interest rates making short-term bonds more attractive, it's important to reassess the role of bonds in your investment strategy.
Higher interest rates have made short-term bonds more attractive than they've been in some time. Here are the top short-term bond funds to consider for your portfolio. These bond funds pay out greater yields than government bonds, which can be beneficial to income investors with a higher risk tolerance.
Bonds took a bath in 2022, leading investors to question their place in a retirement savings account. However, with the right approach, bonds can still play a valuable role in diversifying your portfolio and managing risk. I bonds, for example, are designed to protect your investment from inflation and currently pay interest rates of 4.28%.