Nils Larsen Weighs in About How to Know if You Should Invest More in Bonds
LOS ANGELES, CA, UNITED STATES, June 9, 2021 /EINPresswire.com/ — Nils Larsen considers it a good idea to invest. If you have money to spare, regardless of the amount, you can look into financial management options that are right for your budget and lifestyle. This includes bonds, which are ideal for many people. Investing helps you to protect against the effects of inflation and allows you to increase your wealth. It’s in your best interest to talk to a portfolio manager such as Nils Larsen to figure out the right course of action.
Nils Larsen on Why Bonds Are Great
Nils Larsen believes that bonds can be a wonderful investment vehicle for many individuals. It’s important to remember that there aren’t any types of investments that are totally resistant to inflation. However, if you’re concerned about inflation and still want to purchase bonds, you can get inflation-indexed bonds such as Treasury Inflation-Protected Securities (TIPS) that are available in the United States. The way that these work is that when the Consumer Price Index rises, the value of these bonds also rises. Both the base value and the interest rise on them, so you’ll actually benefit.
Nils Larsen states that you can access inflation-indexed bonds in different ways. For instance, you can directly invest in TIPS through a brokerage account or the U.S. Treasury. People who are interested in something a bit more risky can purchase junk bonds that gain in value when inflation rises and have an opportunity to get higher returns on this fixed-income investment.
Nils Larsen Believes That Bonds Offer a Predictable Income Stream
According to Nils Larsen, bonds provide you with a rather predictable stream of income. This is because they pay interest twice a year, for the most part. You’ll be able to preserve capital because you’ll get back at least the entire principal amount if you allow the bond to mature. They’re also great because they can serve as a way to offset losses if you have more volatile types of investments in your portfolio.
Reduce Tax Burdens with Bonds
There are specific types of bonds that allow you to reduce your tax burden. Interest that’s on municipal bonds is tax-free on the federal level, as well as on the state level if the investor owns the municipal bond issued by the state in which they reside. Income from U.S. Treasuries also is free from taxes at local and state levels.
Nils Larsen Is a Strong Financial Portfolio Manager
Nils Larsen has more than 20 years of experience. He’s made it a commitment to understand his clients’ goals, objectives, and risk tolerance. He also understands the intricacies of various types of investments and how to adapt to a changing landscape with investment strategies.
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