Financial advisor Paul Winkler discusses the basics of bonds and how stocks fit into a diversified financial strategy. He explains that bonds are fixed-income investments where investors lend money to entities like governments or corporations in exchange for regular interest payments. Stocks represent ownership in a company and offer potential for growth through price appreciation and dividends.
Winkler emphasizes the importance of balancing bonds and stocks to manage risk and achieve long-term financial goals. He also answers questions from callers about building a stable and effective investment portfolio.
**Why this matters**
Knowing the differences between bonds and stocks helps investors make informed decisions that align with their risk tolerance and financial objectives. A well-structured portfolio can provide both income and growth, contributing to a more secure financial future.
Source: NewsData