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Originally Posted by toy71camaro
awesome! Thanks! I was just reviewing their "learning Center" stuff. I ended up signing up for Schwab as well last week.
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Don't think you need BONDS unless you're almost dead like I am... and retired.
They're far riskier than you think... unless you plan to hold to maturity (like I do). The returns - even though they're tax free - are ridiculously low... and if you hold to maturity you get no growth on your capital.
I hold them as a hedge - and for INCOME tax free which I need because of all my other "stuff"... otherwise I'd never buy them.
Just my .02 worth.
If I was younger and had the energy and drive and wanted to grow my dough and needed diversification -- I'd by loading the boat with cheap (200K to 250K) rental houses... with fixed rate mortgages... and let the renters pay the note down... while I wait for the market to come back. So I'd be in stocks -- and rental property (I already own a large apartment complex and the note on a commercial building) - because that is REAL ESTATE diversity. I also own a stock -- National Retail Properties (NNN) which is commercial real estate... and it pays 5.76% and has pretty good Total return numbers...
That's not a recommendation --- I'm just saying at you guys ages -- bonds are not for you -- and when people say diversify - it doesn't have to be just stocks... it can be lots of different assets.
