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Thread: I hate bonds

  1. #1

    I hate bonds

    Our FI allocation (5% cash + 35% bonds) has a negative real net expected return of 0.5% per year.
    I also dislike vegetables. But I eat them during every lunch and dinner.

  2. #2
    I hate them too. The only positive thing I can say about my bond funds is that they lose less money in market downturns than my stock funds. With yields as low as they are, I don't understand why bonds are so popular.

  3. #3
    I love my bond funds, but I do have to be very selective (I don't own treasuries and have very little in investment grade bonds). My bond funds provide a very comfortable retirement income (over 4%), are much safer than equities, have provided a total return that exceeds their yield, have been much less volatile than equities, and during the equity corrections they are much less stressful to hold with minimal losses.
    I don't understand why bonds are not more popular!

  4. #4
    Great post Conroe.
    I doubt that I own any of the bond funds that you own, but still admire your post. Bonds are good and necessary.

    Hope your are enjoying your retirement in your new home.

  5. #5
    hondo, nice to hear from you. I am enjoying retirement in my new home in Tyler, Texas. This is where I raised my children and where my daughter and 2 youngest grandchildren live, and where some longtime friends live. These days I focus more on meeting my friends for breakfast, and taking my children and grandchildren on vacation trips, than being too active in messing with my retirement portfolio. I am very content with a very low risk retirement portfolio, but enjoy reading what others are doing, who are more active in their investing actions.


 

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