Finance Flash Go! Episode #3: Bonds

This episode of the Finance Flash Go podcast is all about bonds including what they are and how many you need.

Listen to the full episode and subscribe here!

What is a bond?

A bond is basically an IOU from the government, a corporation, or other entity. You give them money and they promise you to give that amount of money back with a fixed interest rate at a later date (called the maturity of the bond, like 5 years, 7 years, or whatever). Ā 

Bonds

A stock is a part ownership in a company. You buy one share and you become an owner. Each share has a price tag when you buy it that changes based on various and, at times, arbitrary factors as they are traded in the stock market. If the price goes up, good for you, you just made money. If it goes down…not so lucky.  

Bonds are considered safer investments in general. You will likely want to have both stocks and bonds in your portfolio. The more bonds you own, the more conservative and less risky the portfolio is. However, the expected returns are lower in return. A good rule of thumb is to take your age and round down to the nearest 10. This is the percentage of bonds that you will want to have.

Related posts:
10 Reasons a Hybrid Investing Approach is Best
How to Find the Perfect Balance Between FIRE & YOLO
5 Easy Steps for Physicians Who Hate Personal Finance
Finance Flash Go! Episode #45: Small Cap vs. Mid Cap vs. Large Cap Stocks
My Stock Portfolio Is Better Than Your Financial Advisor’s
Stress Free Stock Market Investing Is Easier Than It Seems!
Important Money Lessons That I Learned From My Wife
Finance Flash Go! Episode #44: Understanding Growth vs. Value Stocks

I really hope that you all enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected].

Also, please subscribe and give us a 5-star rating if you enjoy the podcast! It helps us continue our mission of helping all of us to achieve financial well-being!

Love the blog? We have a bunch of ways for you to customize how you follow us!

Join the Prudent Plastic Surgeon Network

And accelerate your path to financial freedom with my free FIRE calculator!

We won’t send you spam. Unsubscribe at any time.

Join The Prudent Plastic Surgeon Facebook groupĀ to interact with like-minded professionals seeking financial well-being

The Prudent Plastic Surgeon

Jordan Frey MD, a plastic surgeon in Buffalo, NY, is one of the fastest-growing physician finance bloggers in the world. See how he went from financially clueless to increasing his net worth by $1M in 1 year Ā and how you can do the same! Feel free to send Jordan a message at [email protected].

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

July 11, 2025

Dollar Cost Averaging or Lump Sum Investing: Which is Better?

This is actually a fairly common question that I get asked regarding my philosophy as well as my own investing habits. And I’m always kind

July 10, 2025

PhREI Network Roundup 7-10-25: 3 Upsides of Locum Tenens Medicine

As you know, as part of the PhREI network, we decided to start a weekly roundup to share new activity from across the network. Enjoy! The

July 9, 2025

Is a 401k Account Really Money Jail?

I still consistently hear a lot of folks in the personal finance space refer to 401k investment accounts as “money jail.” And to be honest,