Why Bother With Bonds: A Guide To Build All-Weather Portfolio Including CDs, Bonds, and Bond Funds--Even During Low Interest Rates (How To Achieve Financial Independence)
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Why Bother With Bonds: A Guide To Build All-Weather Portfolio Including CDs, Bonds, and Bond Funds--Even During Low Interest Rates (How To Achieve Financial Independence)
A practical how-to guide for every investor. For ordinary investors who want to build an all-weather portfolio. It is time-proven wisdom, and encourages you to take control of your finances. Learn how to use CDs, bonds, and bond funds to manage risk/reward even during low interest rates. You will learn:
How to choose your stocks/bonds allocation
How to become immune to changing interest rates
When to use CDs and individual bonds
How to choose a good bond fund
How to hedge against unexpected inflation
Contents: Foreword by Larry Swedroe
Introduction
- Who Should Read This Book?
- Start with a Sound Financial Lifestyle
Why Bother With Bonds?
- Stocks are risky in the short-run, and the long run too!
- Bonds Make Risk More Palatable
- Bonds Can Be A Safe Bet
- Bonds Are An Attractive Investment Diversifier
Life Is Complicated. Bonds Are Not.
- What is a Money Market Fund?
- Are CDs Better Than Bonds?
- What Are Bonds?
- What is a Bond Ladder?
- Individual Bonds or a Bond Fund?
Bonds: Risks and Returns
- Yield, Price And Making Comparisons
-- How To Compare Individual Bond Returns
-- How to Compare Bond Fund Returns
-- Total Return: To Measure And Compare Performance
- How To Reduce Risk From Interest Rates Changes
-- Duration: The Point of Indifference to Interest Rates
-- Duration: The Measure of Sensitivity to Interest Rates
- How To Reduce Risk From Unexpected Inflation
-- Real versus Nominal Interest Rates
-- Why Include TIPS In Your Portfolio?
- Credit Quality or Default Risk
Build The Bond Portion Of Your Portfolio
- Start With Your Goals.
- How Much Risk Is Right For You?
-- Understand How Much Risk You're Taking
-- Take Your Risk In Stock Market, Not Bond Market
-- How Much in Bonds? How Much in Stocks?
-- Your Needs Change Over Time
- The Importance of Low Cost
-- How Much To Diversify Bonds?
-- The Importance of Low Cost
-- Five Low-Cost Strategies You Can Do Yourself
- Taxes Matter
- Example Portfolios (both good and bad)
Common Misconceptions Important to Correct
- Stocks Are Safer In The Long Run
- Holding a Bond (or CD) to Maturity Eliminates Risk
- Stocks Are Safer Than Bonds
- The Best Funds Have The Most Stars
- A One Percent Fee Is Small
- Rising Interest Rates are Bad for Bond Holders
- You Can't Beat the Market Using Index Funds
- Use Multiple Investment Companies To Diversify
- You Need Many Mutual Funds to Diversify
- Frugal Means Stingy
Reviews Worth Noting: "[As] stocks have surged and bond yields have dwindled, investors increasingly ask "Why bother with bonds?" Rick Van Ness takes this question and runs with it in his book sporting this provocative title. Sooner or later, this question will answer itself, and it will behoove all investors to get to know Rick before it does. Read it, enjoy it, and profit from it--before it's too late."
William J. Bernstein
Author, The Four Pillars of Investing
"In his simply stated and entertaining book, Rick Van Ness eloquently instructs the reader on how to do bonds right - in fact, better than any single book I've read."
Allan S. Roth
Author: How a Second Grader Beats Wall Street
"If you are a DIY investor . . . you should read this book. It will steer you clear of areas you need to avoid and into where you should be. A quick read filled with valuable info!"
Robert Wasilewski
"This book should be part of America's high school curriculum."