Financial Planners in Columbia, MO show how “high yield” might be worthless.

As a financial planner in Columbia, MO, my goal is to help our clients reach their financial goals. I am frequently asked about investing in “something with a good return, but with minimal risk” and the conversation often turns to “high yield” bonds. These kinds of bonds offer a better rate of return than their more conservative counterparts. The names of many funds also sound quite appealing and can cause people to reach out to financial planners with questions about products like “Fidelity High Income” and “SPDR Barclays High Yield.”
While the improved yields of these funds sound great, they should be approached with a critical eye to make sure the risks are understood. Historically, these investments are called “junk bonds” for a reason. These kinds of products consist of higher risk debt obligations. In other words, potential for superior returns is also jeopardized because the companies issuing the debt obligations have credit ratings below what Wall Street considers “investment grade.”
For advice about junk bonds, people should contact their financial planners.
Columbia, MO recently saw our article about junk bonds in the newspaper. For more information about junk bonds, click over to our article in the Columbia Tribune.
If you would like to learn more about this and other personal topics serviced by financial planners please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
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