Ask the Fool

Q Is it better to invest in Treasury bonds or bills because they’re safer than stocks? — A.T., Hendersonville, North Carolina

A It’s generally good to have some bonds in your portfolio for diversification, and bonds tend to be more stable than stocks. But you can lose money in the bond market, too. For example, interest rates have been very low for a long time and are starting to inch up. As they do, the value of existing bonds (with lower interest rates) will likely drop.

You can always hold a bond until maturity and get your principal back, but that can take a long time. And you can’t do so with bond mutual funds — their values rise and fall with the bond market and can burn investors when rates rise.

The stock market can move in any direction in the short run, but over the long run, it has tended to go up. It’s a great place for long-term money, while short-term money might be parked in safer places such as money market accounts and CDs. Consider your risk tolerance, too, when investing.

Q To buy stock in a company, do I have to work there? — C.S., Watertown, Wisconsin

A If the company’s stock is publicly traded, just about anyone can invest in it. (That said, some companies do offer employees stock options, stock grants or the ability to buy shares of company stock at a discount.) All you generally need is a brokerage account.

Most major companies, and many smaller ones, are publicly traded. Examples include Apple, Boeing, Costco, Facebook, Hasbro, IMAX, iRobot, Kroger, PepsiCo, Sherwin-Williams, Staples, Starbucks, Verizon, Visa and Walt Disney. Learn how to pick a good brokerage at fool.com/how-to-invest/broker.