![\"US](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/08\/iStock-1335987568-1.jpg\")
<\/p>\n <\/p>\n
\n jetcityimage \/ Getty Images\/iStockphoto <\/p>\n
Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> Bonds are an important part<\/a> of any portfolio, but they are particularly crucial for retirees. Experts recommend that you increase the proportion of bonds relative to stocks in your portfolio as you age. The reason is simple: Bonds, especially Treasury bonds, are far less volatile than stocks. In a market downturn, bonds historically fall much less sharply than stocks or may even rise as investors seek out safe investments. They can also provide an income stream in retirement.<\/p>\n But the day of the week on which you buy your bonds may make a difference. Some retirees are buying bonds<\/a> on Friday instead of Thursday \u2014 here\u2019s why.<\/p>\n<\/p>\n Which Day of the Week Is Best for Bonds?<\/p>\n In an analysis of long-term treasury bond purchases from 2002 to mid-2025, Quantified Strategies<\/a> found that Fridays have historically been the best day for bonds. The average daily return for bonds on a Friday was 0.05%, compared to a -0.02% return on Thursdays.<\/p>\n The research also shows that Tuesday is also a good day to buy bonds, particularly if Monday is a down day. On a Tuesday following a down Monday, bonds returned an average of 0.06%.<\/p>\n Performance was measured from the close of trading one day to the close of trading the next day.<\/p>\n<\/p>\n The Benefits of Bonds<\/p>\n There are two main benefits of bonds in your portfolio. They provide income, which can stay in your account or be used to supplement social security and other forms of retirement income<\/a>. And they can lower the volatility in your portfolio, which is important for retirees. Let\u2019s look at these two benefits in more detail.<\/p>\n Income From Bonds<\/p>\n When you buy a bond, you are loaning money to a corporation or a government entity. In exchange, the issuer of the bond pays you interest periodically. When the bond matures, you get your principal payment back. The interest you received over time is your return on the investment<\/a>.<\/p>\n Here\u2019s an example. Suppose you purchase a $1,000 bond that pays 4% interest for ten years. You\u2019ll get $40 in interest each year, usually paid twice a year. During the ten years you own the bond, you\u2019ll get $400 total in interest \u2014 that\u2019s your return on your investment. At the end of ten years, you\u2019ll get back the $1,000 you paid for the bond.<\/p>\n<\/p>\n Before you retire<\/a>, you can reinvest the income you earn from bonds to increase the size of your nest egg. Once you stop working, you can use the income from bonds to supplement your social security, pension or other retirement income stream.<\/p>\n The Security of Bonds<\/p>\n This is not to say that bonds have no risk. Treasury bonds are backed by the full faith and credit of the United States government, so they are considered to be virtually risk-free. But corporate bonds are a different story. Before purchasing a corporate bond, be sure to check the rating from Moody\u2019s, S&P or Fitch. Look for investment-grade bonds with a rating of BBB\/Baa or higher.<\/p>\n<\/p>\n Any company can get into financial trouble, so choose corporate bonds carefully. If a company with outstanding bonds declares bankruptcy, bondholders are further up the list to be paid than stockholders, according to Fidelity<\/a>. This is what makes bonds generally less risky than stocks.<\/p>\n What This Means for Your Portfolio<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Helping You Live Richer<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-experts-review.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon__trusted.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Millions of Readers<\/p>\n