Many people turn to bonds as a means of saving for retirement. Others use bonds as a long-term investment vehicle to fund pre-retirement goals, such as paying for a child’s wedding or paying for college tuition. And then there are those who simply wish to grow their year-to-year earnings by investing in bonds, which are typically less volatile than stocks.
When many people hear the word “bonds,” they tend to think of corporate bonds – those issued by big companies in the public eye. However, there’s a lot more to the bond market than just that. In fact, municipal bonds are another popular option for those looking to break into the world of bond investing.