How do bonds generate returns for investors?
Interest payments are the primary way bonds generate returns for investors.
Bankrate investing editor Johna Strickland has made a career out of explaining complicated topics to everyday people. As an editor and journalist for 15 years, she has touched on nearly every aspect of personal finance and written extensively about the intricacies of public money across local, state and federal entities to help educate taxpayers.
Her coverage included focusing on the financial impacts of government budgets and projects, taxes, legal cases and legislative initiatives. She believes in investing what you can as early as you can and loves spending travel credit card rewards and planning for retirement.
Johna wants you to know
I cashed out my first 401(k), also the only one I’d have in my 20s, because I didn’t understand a rollover to a new provider. But one of the beautiful things about investing and saving for retirement is that you can start over, start again, start from a different place. I did all three.
What matters is that you start. You may make mistakes too but you’ll figure it out. Even experts were once beginners.
Investing can be risky and complicated but investing can also be affordable and straightforward. Start with the basics — fund your retirement accounts, give a robo advisor a try, look at investment funds — but start. Even if it's just $10 at first.
Interest payments are the primary way bonds generate returns for investors.
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