Hey millennial investors, you're probably almost 100% weighted towards stocks in your retirement portfolio.
But you SHOULD still care about bonds. Here's why you do.
Bonds can indicate to you if your stock holdings are going up or down.
Ohh, now you're starting to get interested, right?
Okay then hold off on that urge to flip to an episode of the office. We promise, this is worth it.
There's something called the equity risk premium, which takes into account the expected rate of return on stocks and the rate of return on those boring bonds.
Are you still following?
Well, don't worry, because you're in luck. In the video above we break down how equity risk premium actually works
Wait, wait. It gets better. We do it in baseball terms BEFORE we get into the technical part of it.
Intriguing, wouldn't you say? This isn't something you want to miss.
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