FirstStepsInvesting

Decoder · Kinds of investments

Bond

A loan you make to a company or a government. They promise to pay you interest and return your money on a set date. Bonds usually move less than stocks and pay steadier income, which is why funds mix them in as people get closer to the year they need the money.

For your first $100: Your first $100 will usually sit mostly in stock funds if your goal is decades away — bonds matter more as the goal gets close. The mix question is a kind question, never answered for you here.

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