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Fixed Income Investment Strategies

An overview of the basic fixed income investment products.

Investing Beyond the Stock Market

Many investors know something about investing in the stock market - but what do you know about investing in bonds and other fixed-income strategies?

Smart investing begins with asset allocation: deciding what percentage of your assets should be invested in bonds, stocks and other investment vehicles. If you're like many investors, your investing education may be lopsided towards stocks, not fixed income. But don't worry: Most people's personal finance investing strategy evolves and expands over time, and for many investors fixed income products become more important as they begin investing for retirement. This page summarizes a few pointers for you to seek more successful investing.

Fixed income strategies

The world of fixed income includes many different investment vehicles, from buying municipal bonds to corporate bonds to Certificates of Deposit, or CDs. If you're not investing money actively at the moment, CDs can offer a handy way to keep your cash relatively accessible while helping you fight the eroding effects of inflation - a topic very popular in investing news currently.

Here are some quick investing basics on CDs. CDs are short-term loans, usually made to a bank. You agree to lend some cash to the bank, who agrees to pay you an interest rateon the loan amount. At the end of the CD's term, called "maturity", you'll get all your money back ("principal") plus your interest earned. Because CDs are usually a short-term investments, you'll typically earn an interest rate lower than that offered for long-term investing vehicles like 30-year bonds.

TradeKing offers great investing tools to make online investing in CDs quick and painless. Just check out our Fixed Income Center for a comprehensive selection of CDs that suit your specific needs. While you're there, check out our Bond Finder for help with the investing guidance you'll find on municipal and corporate bonds and other fixed income investment strategies. You may be pleasantly surprised at what you find!

Stocks, bonds mutual funds, and more

Of course, personal finance- investing involves much more than just investing in stocks or bonds. For self-directed investing, for example, it often pays to learn how to invest in diversified assets such as mutual funds. In a mutual fund, investors pool their assets toward a common investing goal, pursued by a mutual fund manager on their behalf. Whether you lean towards value investing, international investing, socially responsible investing (also known as "ethical investing", "environmentally responsible investing" or "green investing"), even Christian investing, chances are you can find a mutual fund specifically geared to your interests and values.

"Sector investing" is another term you may find helpful. If you've read investing articles that suggest one industry (or "sector") may benefit from upcoming legislation, consumer behavior changes, or other factors, you may want to invest in mutual funds targeting specific sectors. As you can readily see, there are many choices available.

Mutual fund investing offers lots of flexibility. Carefully read a fund prospectus prior to investing. Mutual Funds are subject to market risk and may carry significant fees.

Give TradeKing a call. We'd be happy to help.

Whatever your inclination, TradeKing makes it simple to research your choices - and we're happy to answer your questions. We don't offer investing advice, but we do offer plenty of investing guidance to help you use our investing tools intelligently. Whether you're looking into Roth IRAs, ready to jump-start retirement investing, or curious about investing for kids, a TradeKing representative would be glad to walk you through the specifics and help you find the choice that's right for you.

Try TradeKing today

A nationally licensed stock and options brokerage, TradeKing's goal is to empower self-directed investors like you to become smarter traders. At TradeKing we offer the same fair and simple price to all our clients - just $4.95 per trade, plus 65 cents per option contract. You'll trade at that price, no matter how often you trade, or how big or small your account may be. Isn't that fair and simple?

SmartMoney awarded TradeKing five stars for outstanding customer service for 3 consecutive years from 2008 through 2010. The SmartMoney online broker survey evaluates brokerages on interest rates, trading tools, research, banking amenities, investment products, customer service, commissions, and mutual funds.

Fixed-income investments are subject to various risks including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

TradeKing's Fixed Income platform is provided by Knight BondPoint, Inc. All bids (offers) submitted on the Knight BondPoint platform are limit orders and if executed will only be executed against offers (bids) on the Knight BondPoint platform. Knight BondPoint does not route orders to any other venue for the purpose of order handling and execution. The information is obtained from sources believed to be reliable; however, its accuracy or completeness is not guaranteed. Information and products are provided on a best-efforts agency basis only. Please read the full Fixed Income Terms and Conditions .

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