| Sure, if the price spikes above par value (the price at which the bond will be redeemed at maturity), I may consider selling early. But generally, I'm buying the bond to collect a consistent stream of income with the virtual certainty of getting my money back. The important thing to remember when owning bonds is that you get the par value of the bond back at maturity... no matter what the bond, bond market, or economy is doing. For example, let's say you buy a bond at par value ($1,000) that yields 4% and matures in two years. That means you'll collect 4% interest each year and receive your $1,000 back at maturity. If the bond declines in value to $900 next year, that doesn't matter - because you'll still get your $1,000 back at maturity and you'll still collect 4% interest in the meantime. The interest rate you'll receive does not fluctuate with the price of the bond. I like that kind of stability for a portion of my portfolio. I keep my bond holdings relatively modest, because I'm still building wealth. I have years to go until retirement. But investors who have a lower tolerance for stock market risk might want to have a larger percentage of their portfolio invested in bonds than I do. If you're interested in bonds, I do NOT recommend bond funds or exchange-traded funds (ETFs). These investments will lose value as interest rates rise. Individual bonds may also lose value, but at maturity, investors will get their money back. There is no maturity on a bond fund or ETF, so there's a much greater risk of losing money. Lastly, it's important to note that your bond positions aren't likely to grow your wealth much, unless you buy bonds that are undervalued. You're not going to get rich buying bonds. But you may stay rich. Take it from the dividend guy. Good investing, Marc P.S. If you can't handle the potential for a major market downturn and you'd prefer to lock in a predetermined return instead... I highly recommend you check out this video. In it, I explain how investors can generate locked-in returns of more than 200% in as little as four years backed by legal contract... without having to ride the roller coaster that is the stock market. Sounds pretty nice, doesn't it? Get the details here. | 
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