<h1>3 Reasons I Will Never Invest in Bonds</h1>
<p>Here are the three reasons I will never invest in <strong>bonds</strong>. I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free to help you make informed decisions.</p>

<h2>1. Interest Rate Risk</h2>
<p>First, consider interest rate risk. If rates go from <strong>2%</strong> to <strong>4%</strong>, no one wants your <strong>2%</strong> bond when they can now get a bond for <strong>4%</strong>. If you need to sell it, you’d have to do so at a discount.</p>

<h2>2. Inflation Risk</h2>
<p>Next is inflation risk. If you have that same <strong>2%</strong> bond and inflation is <strong>2.5%</strong>, you’re looking at a negative <strong>0.5%</strong> return on that bond. You're essentially losing money.</p>

<h2>3. Opportunity Cost</h2>
<p>Finally, let’s talk about opportunity cost. As we live longer and healthier lives, many of us underestimate the growth we actually need in retirement to afford our desired lifestyles. Trading <strong>40%</strong> of your portfolio at the age of <strong>60</strong> for some concept of principal protection may not be as protective as you think. But that’s up to you and always will be.</p>

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