We are very familiar with borrowing money for most major expenses, but do you know that businesses and government can also borrow from individuals like you? This is actually done when they issue bonds that promise to pay their investors a fixed percentage of interest for the time the money was used. Thus, investors can treat it as an important source of income especially upon retirement.
Investing is bonds are one good way of building one’s financial portfolio. The stream of interest payments that come in may be added to the original investment account for it to earn more. It could also be diverted to a mutual fund account or buy shares of stock. There are more viable options than putting them into an account and can easily be accessed for withdrawal. After all, this is intended for your future.
