The Name's Bond

There are only 2 way to riches... Owning and Loaning... We have been discussing stocks for quite some time now, stocks are owning businesses. We now go to bonds which is loaning to businesses and in the most safest part to the government.

I've been contemplating the idea of buying more bonds than stocks. Right now, bonds are available for 6% - 7%. From Treasury to Corporate bonds. And I think that bonds are one of the best way to invest if you focus more on income.

Why bonds rock?

They are safe. The money you invested in bonds are safe whether the economy tanks or not. They provide income thru the interest payments.

Why bonds suck?

Because bonds are loans to corporation and government, your principal investment don't appreciate in value. You'll receive your money back in full once the bond matures.

Why I would buy bonds?

Because they provide income. I'm not interested much on capital gains (though it is good), I much prefer income. And since bonds provide good yields than stocks, I might buy more of these in the future to hit my goal.