I did a little research on the things to consider when investing in bonds in my 40s (also applicable to 30s) and here is what I have gotten from the net:



Following are some bond strategies to consider at this stage in your investment life. As always, it’s a good idea to consult a financial advisor before making any investment decisions.

• Zero Coupon bonds for specific goals Zero coupon bonds are sold at a steep discount from their face value. When the bond matures, the face value reflects both the principal and the interest accumulated. Buying a zero coupon now with a maturity that coincides with the year your child starts college or the year you would like to retire can be a cost-effective way to increase the likelihood that you will have the money you need when you need it. Zero coupon bonds work best in a qualified, tax-deferred retirement or college savings account because the interest is taxable when it is credited to the bond, even though you can’t spend it until maturity.
• Tax-advantaged bond investing If you’re in a high tax bracket, tax-advantaged municipal bonds issued by state and city governments may be more attractive than corporate bonds that pay taxable interest income. Interest paid on most U.S. government securities is exempt from state and local income tax, which can be important if you live in a high-tax state. Municipal bonds pay interest that is exempt from federal income tax, and, depending on the issuer, possibly from state and city income tax as well. To see how much you would have to earn on a fully taxable investment to match the return of a tax-exempt investment you’re considering, use the Taxable Equivalent Yield calculator. You can earn tax-exempt interest on bonds and bond funds that qualify. In most cases, you don’t want to put this kind of investment in a tax-deferred retirement or college savings account, however, so you don’t waste the tax exemption feature.
• Increasing your allocation to bonds If you have not yet started investing a portion of your assets in bonds, now may be a good time to start. If you are willing to take a little more risk for the possibility of higher returns, consider high-yield or longer-term bonds or bond funds.

Source:
http://www.investinginbonds.com/lear...id=7&id=409#tf

The article is a good and useful guide for me and hope it does to you, too.

What always fascinates me is the sheer variety of financial products - no one's happy with just having "a bond" - got to be different types for every possibility.

I hear a lot of new funds are like that, too.