How to Invest In Bonds | OUR TOP PICKS & Our Strategy for Investing for Financial Independence

Our Rich Journey - How to Invest In Bonds | OUR TOP PICKS & Our Strategy for Investing for Financial Independence: Bonds, Bonds, Bonds!!! One of the most important decisions an investor can make is how to allocate his/her investment portfolio. Specifically, as an investor, you must decide whether you want to invest 100% in stocks, 100% in bonds, 50% stocks and 50% bonds, or any other combination of stocks and bonds. But, in order to make that decision, you need to be fully informed about how bonds work and how they can impact your portfolio. That’s why we made this video! In this video, we discuss what bonds are, the different types of bonds, how you can invest in bonds, the pros and cons of investing in bonds, and we identify specific bond investments with the top discount brokers online. AND we also share our opinion on bonds and whether we used bonds to create our financial independence, retire early (FIRE) portfolio. Thanks for watching!

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We are not financial advisors. Our videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!

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[avgholson]

Invested in VTSAX this week. After much reflection and a series of events, I'm definitely on the FIRE train. I want my time back.

[ofircohen]

My allocation is 90% in stocks and 10% in bonds. I Currently investment my money only with Vanguard. Thank you for a great video like always!

[foolishbulls]

We invest 1/3 of our main IRA in cash & bonds. The remaining 2/3 is in stocks and index etf’s. All of our investments drive toward income and then growth (dividends). We are retired so this fits us at this point in our lives

[Tonymanero]

I am recently retired at 60 years old and I am 100 pct invested in U.S stocks. My situation is somewhat unique because I have 0 debt and 5 years of living expenses in cash. I (personally) have a very high -risk tolerance and didn't lose any sleep when the market went down 35 % in March. Your losses are bigger AND your gains are bigger in the stock market, but, ...if you believe that over time it will go up you will always be better off in stocks. My mother is the complete opposite and thinks getting 1% in a CD is a great deal. And I will be getting $2000 a month from S.S in 2 years which will cover my bills, ...so I am very confident in my asset allocation. Btw, ....my total stock market return over the last 10 years was 10.8 %.

[FrugalRules]

I think sometimes the focus for investing is on stocks, real estate, or other areas and people don't always consider investing in bonds. I'm glad you're sharing this.

[robertgadawski]

You mentioned in this episode that you don’t invest in bonds. However there was an episode from over a year ago where you discussed your portfolio makeup and it said you have about 20% in bonds. Why the change? Thanks. Love the videos. You two are great!

[strawmummy]

My inspiration, you got me started. God bless you guys!

[Kemmajed]

You guys have educated me so much throughout the years. I'm grateful for your knowledge and content. thank you.

[guanafd]

I wanna just say this about bonds - I invest in mutual funds in my seventh world country because that's the best option, we have no etfs or index funds here, and, every quarter of the year I transfer 0.75% from the stocks into the bonds. Why? Right now I don't need the money from my investments, but I wanna be sure I have a pot that is stable to pull money from. That's the role of bonds in my portfolio. And yes, i transfer 0.75% quarterly to add up to 3% annually since the mutual funds charge me around 2% in fees. Their 2% and my 3% for me it's the 5% rule. I am using it ahead of time as if I am retired right now, to avoid volatility in case I need big chunk of my money. And I still invest every month into the stock funds.Great explanation why you don't hold bonds, makes sense.

[joevelasquez]

It was great to see you guys on a CNBC article. Very cool to see how much you both have grown as entrepreneur's

[ShariKaye]

This was very thorough! I was surprised at your stance on bonds, especially since you are in the financial independence stage.

[DividendGrowthInvesting]

Love this!! Every channel/blog I follow on FIRE shares a very consistent message on bonds. Bonds are there to smooth out the ride - JL Collins

[TiddyFreckle]

I love how organized you are with the videos and how much the both of you agree with each other on the subjects you speak about within the financial/investing world. I’m jealous! Teehee. And thank you so much, you have helped me understand A lot more about safely investing. I started with 3000 dollars in a fidelity index fund (FXAIX) on March 25 and have put in 500 dollars per month after that. Now I will look to diversify. Again, thanks so much!

[JoseAntonioMartinez]

I remember in a previous video you guys mentioned your total portfolio was 60% stocks and 40% bonds. Did you reallocate it recently to 100% stocks?

[tyronelder]

i am 19 turning 20 starting my fire now, single and im making 50k rn your channel is so helpful and motivation also being a successful black family subscribed!!

[bmahoney]

Great video, I’m glad you did one to cover bonds. You did fail to touch on the fact that the value of your bonds can decrease as well, particularly if interest rates go up. In the 1980’s I would have owned some bonds, but not in the last 20 years, they pay close to nothing and interest rates can’t go any lower so the bond values will not appreciate. I agree on your 100% stock allocation, that’s were I am at as well. You can find stability in equities through extreme diversification US plus some international stocks and you can over weight you portfolio with less volatile sectors of the market like utilities, consumer staples, low beta stocks, dividend aristocrats for improved stability without compromising total returns.

[TheBlackMage]

Where do you keep your "emergency fund" for stock market declines? Are you using HYSAs?

[ReadingTimeWithZa]

Knee-high to a grasshopper! Oh Lord! I still have some government bonds from years ago that I need to ditch and reinvest in index funds. Thanks so much!

[oyamsbabe]

Awesome video👏🏼
my daughter must have heard your voices while in the other room, bc she yelled for me to forward your video. I just told her she needed to subscribe to you guys. I’ve told her about you several times. She’s in med school w/substantial student loan and I just told her that, while the med school will provide the skills she needs to me a medical examiner, you guys will provide what you she needs to be debt-free, become financially literate and independent and retire early. I wish I had these info 25 years ago. I hope she appreciates your knowledge and wisdom like we, your subscribers do. Thanks again for your continuing care. Stay safe and regards to your lovely girls.