Radical Guide to Bonds: Summary – Getting into Bonds

• Direct buying can be cost-effective.

• Trade your bonds through an online bond broker for more competitive pricing.

• If you’re not an active trader, buy your bonds online through selling groups for U.S. agency bonds, corporate bonds and in the regular auctions for Treasuries.

• If you’re an active trader, trade online in Treasuries, U.S. agency bonds and larger corporate bonds, as you’ll find the most liquidity and price quotes from online brokers.

• Be very careful about buried calls in bonds.

• Check out bond ladders, indexed bond ETFs and low-cost indexed bond funds for your bond market exposure.

• Avoid actively managed bond funds.

• Do not believe one vehicle --- whether ETFs, funds or ladders --- trumps one or the other vehicle. Costs are not clear, except with ladders if they are bought through a selling group or auctions.

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