So this brings us to the end of our tape on bond and fixed income investing. Lately it seems, bonds have become the Rodney Dangerfield of the investment world -- they don't get any respect.
However, there's probably a good reason for this. Bonds were a terrible investment in the 1970s, but were better in the 1980s and 1990s. Stocks, meanwhile, have been great investments in the 1980s and early 1990s.
The relationship between bonds and stocks is like the relationship between having a job and being the owner of a business. If you have a job you'll be able to eat, but you'll never get rich on wages. To get rich you need to have ownership in a company.
Likewise, bonds provide steady income, but not the profit potential offered by stocks. Although you'll never get rich with bonds, they do provide a steady stream of income like wages from a job. And especially if you're retired, a steady stream of income is nothing to sneeze at.
So thanks for listening, and remember to check out the luhman.org web site and our other audio tapes for more help with your finances.