When it makes sense to own more bonds than stocks

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Wealth Coach: Sometimes it makes sense for investors to flock to the safety of bonds over riskier assets like stocks. Here's why.

Unless you are extremely risk averse or depend on a steady stream of income for your daily expenses then it may not make sense to buy bonds instead of stocks. The stock market historically outperforms bonds over the long run.But bonds offer a degree of safety — particularly during times when investors are nervous about the broader economy, earnings growth and stock market valuations. Look no further than the fourth quarter of 2018.

Adelman said if you're under the age of 40, you'd mainly want to own a small percentage of bonds — maybe about 20% of your portfolio. But he said that allocation should steadily move higher as you approach retirement. By the time you are 65, it's a good idea to have at least half of your investments in fixed income.Karen Harding, a partner in charge of the private wealth team at NEPC, also thinks bonds need to be a key part of any diversified portfolio.

 

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بطل شجعاع تحياتى

Bond notes here? Asking for fellow Zimbabweans🇿🇼😂😂😂😂😂😂

When you’re closer to retirement than me.

Please.... The LAST place anyone wants to be coming for financial advice of any kind, is CNN. PERIOD

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