Why Bonds Are CRUCIAL For Your Financial Security

Added: 2026-06-02

[00:00:00]later. If you don't understand bonds, you don't understand money. People sleep on bonds. Here's the honest case for owning them. Now, I want to be honest with you up front. I don't own bonds. My business generates cash flow every month that isn't tied to the stock market. If the stock market crashed tomorrow, I wouldn't lose much sleep. That's exactly what bonds can do for you. Here's the simplest way I can put it. Most people don't need bonds. They need cash flow, predictable income that doesn't depend on whether the market is up or down. If you don't have that, no business, no rental income, nothing, bonds are your substitute. When the stock market crashes, people tend to run into US Treasuries because they're viewed as the safest place to park money, and that becomes your cushion. Right now, the US 10-year Treasury is paying around 4 to 5% [music] per year. That's real money for doing basically nothing, just lending money to the US government.