A bond can promise regular interest payments and return your principal on a specific date. That’s a pretty appealing arrangement, especially for investors who prefer fewer surprises in their portfolios. But individual bonds come with a catch: The payment schedule might look simple while the investment itself hides several moving parts.
Unlike a bond fund, an individual bond has a specific maturity date. You can choose when you want your money back, assuming the issuer meets its obligations. That control can make bonds useful for retirement planning, future expenses, and income strategies.
