What Should My Ratio of Stocks to Bonds be Right Now?

What Should My Ratio of Stocks to Bonds be Right Now?

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[andrem]

WOW, I love Dave! Was hoping he would say this!!!

[Minte]

Dave is probably the only reason i stayed the course in investing through all of 2020

[donporter]

This advice missed out on the most important question: how much do they expect to spend on college? If they have $160K and they expect to spend $160K, they're done! Cash out. Start investing other places for other purposes.

[Gglive]

165 thousand is more than enough. I would stop investing in the 529 and invest in 100% 10x stocks for yourself.

[PunmasterSTP]

Thanks for all the really great information!

[phad]

Stock prices are inversely related to interest rates too. I.e. If interest rates rise, it's not just bond prices that fall. Stock prices would fall also.

[hodoprime]

90% worldwide stock index, 10% precious metals index fund. When interest rates rise, transfer 10% from stocks into short-term bonds or equivalent to high-yield savings account.

[nathanbishop]

No matter what you invest in, always look long term, don’t try to get rich quick and then blow all your money

[Index-o]

Sound advise at this time...The Vix doesnt really indicate major erosion in comparision to the early past we have come along way in rebuilding confidence.

[ryant]

Dave is correct that lower interest rates reduce the value of bonds but it is not by a huge amount. If you look at something like Vanguards Bond fund even at the height of the pandemic it only dropped from 22 to 19.6.
I personally would not touch bonds until I am either retired or a few years from retirement and I don't want any surprises.

[harrisonwintergreen]

The book Stocks for the Long Run by Prof Jeremy Siegel explains how bonds often lose money after inflation and taxes

[brockg]

Dave was spot on but the interest rate risk can be reduced by using shorter term bonds. Now that rates are high it's a great time to buy 30 year bonds.

[ryambel]

My morning routine since I followed DR

[chadpleasant]

I agree with Dave. I made the same analysis around May. I currently have 5% in bonds.

[jacobklein]

No US bonds, ever. The return is lower than real inflation and furthermore the assurance of payment is overkill. If you must have bonds, buy them from higher paying countries that are still solvent and will pay the coupon.

[micahbrittain]

I’m so glad I started a Roth IRA. I feel already on the way to financial peace.

[SuperYova]

Interesting advice as to what would transpire with the stock market and interest rates from when this video was published (Jan 23, 2021) to the time of this writing (May 4, 2024).

[SandDuneProperties]

I know it's what is CHARGED, but $160K for an education you can get from GOOGLE is ridiculous! Both of our daughters went to Florida Universities. Between in-state pricing, merit scholarships, working as RAs and at the gym, "OUR" school costs were next to nothing for very marketable CHEMISTRY & BIOLOGY degrees.

[IslandTourist]

The only bonds I have are from like three decades ago. I'll stick to stocks imo.

[rothbj]

Does this apply to those Nakatomi Plaza Bearer Bonds?