Low risk: If you are the kind of person that suffers heart attack any time the stock market fluctuates, bond may be a better option for you as it is relatively more stable than stocks. Treasury bond in particular carries very low or no risk at all as it is being controlled by the government who can always print out cash to settle their creditors.
Fixed date for interest: In bond, the interest is paid at a fixed date mostly bi-annually. What this means is that at least you can always expect an income flow at a particular time of the year. This can greatly help you make plans ahead because there is an assurance that money will be available at the time.
Retirement planning: If you are planning for retirement, bond should be in your investment portfolio, it is one of the best ways to save for retirement. You can always be rest assured that no matter what happens, there will be money for you. This is most assuring if you invest in a treasury bond.
Long term project: The best way you can save for a long term project such as paying for your children’s education fees, home purchases etc is through bonds. You can build up the cash easily with less effort if you put it into bonds.
