Northwest Financial LLC

BONDS

Bonds are another type of investment vehicle. They are a contract between a borrower and a lender in which the borrower promises to pay, at maturity, the face value plus a specified amount of interest for the period of time that the bond is outstanding. Also called a "debt security," bonds are usually issued by government agencies, municipalities, and corporations.

Bonds are also known as "fixed-income" securities because the amount of income the bond may generate each year is "fixed", or set, when the bond is sold. No matter what happens or who holds the bond, it will generate exactly the same amount of money.

Almost all investors who buy bonds buy them because they are generally considered safe investments. However, bonds carry the potential risk of default, no matter how remote that risk might be. In addition, bonds are subject to market fluctuation, and, if redeemed prior to maturity the value of the bond may be worth less than the original cost.

Click here to get more information about U.S. government bonds.

Your Northwest Financial LLC financial representatives can help you analyze the appropriateness of bonds in your overall investment strategy.

Access to securities and insurance products provided by Northwest Financial Group, a registered broker/dealer, member FINRA/SIPC. Northwest Financial Group is a subsidiary of Northwest Financial LLC, a wholly owned subsidiary of Northwest Federal Credit Union. Securities and insurance products are offered through LPL Financial and its affiliates, member FINRA/SIPC. LPL Financial has contracted Northwest Financial Group to refer securities and insurance business to LPL Financial. Northwest Financial LLC and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial. Not NCUA insured. No credit union guarantee. May lose value.

Loan protection and tax preparation services are not affiliated or endorsed by LPL Financial.

The LPL representatives associated with this site may only discuss and transact securities business to residents of the following states: AL, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NC, NH, NJ, NM, NV, NY, OH, OK, OR, PA, SC, TN, TX, UT, VT, VA, WA, WV, WI.