Article: Bonds serve needs of fixed income

It's hard to get worked up about bond mutual funds when interest rates are rising, but most financial planners will tell you that no matter what the economy is doing or where rates are headed, a portion of your portfolio should be devoted to fixed income.

Even the youngest investors, or those convinced they have years of saving ahead, should allocate at least 10 percent of their portfolios to bonds, because it will help reduce volatility when stocks hit the skids. Older investors, or those with shorter time horizons, should consider putting a higher percentage in fixed income, financial planners say.

"Bonds tend to be the stepchildren of the financial services universe; they're totally ...

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