When you invest money for a short term goal, taking extra risk is like playing with fire. The best short term investments will preserve your money.

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One of the ways that you can diversify your portfolio is to add bonds to the mix. Average investors, though, can use bonds in their asset allocation by investing in baby bonds.

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For the past four years investors have searched for higher yield as the Fed pushed rates lower to spur economic growth. But it won't last forever.

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Bond ratings make it easy for investors to understand the default risk of a bond, while still taking into account all the other risks.

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Adding geographic diversity to your portfolio with foreign bond funds. Foreign bond funds are becoming increasingly popular as investors look for yield.

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