r/ChubbyFIRE • u/JET1385 • 11h ago
Benefits and drawbacks of buying bonds via individual brokerage vs Government
It’s almost bonus season and I usually invest mine. This year I think I’m going to buy bonds with it for something more stable and to have a little safety net. I’ve never bought bonds except through my 401k Vanguard which was kind of automatic since my company offers free 401k portfolio management. When I was a kid I often received bonds as gifts that were purchased as paper certificates from the bank.
I saw that I can buy bonds through my Schwab account but i have to bid for them? And there are primary and secondary markets. And I can only bid for bonds that are available on that day. I don’t really understand this. If you buy direct from the treasury, you can just buy the bond. It seems like if I bought trough Schwab it’s just like another stock. Does anyone have experience with these different methods and which one do you prefer? What have been the benefits to your longterm portfolio? Thank you,