Living With Inflation Using Corporate Bonds

                       

There is a possible solution to the quandary of bond ownership amidst inflation.

                       

The bulk of investors tend to overlook the principle of duration.

                       

Yet, they can overcome inflation with the wise use of bonds and the reinvestment of their dividends, using low-cost mutual funds or ETFs (Exchange Traded Funds).

                       

The proper implementation of duration should suit the

investor’s personal holdings horizon. That is, how long the bond fund will be held before the funds will be needed.

                       

Certainly, corporate bonds can help overcome inflation and the dearth of income and potentially limited growth from stocks. Despite what most investors believe.

                       

But they must be sure to invest in a low-cost bond mutual fund or ETF where interest earned is automatically reinvested in shares of the same fund each month.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)