This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
The adviser I'm in touch with is 'Carol Vivian Constable, she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. her provides entry and exit point for the securities I focus on.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
Maybe the best Econ 101 bond education I have seen including what I remember from Econ 101. I don’t assume I know more than the professionals we hire to help us with our financial lives but do want to know enough to be well informed. Great video and many thanks. Just hit the follow button.
(10:50) You switched from bonds to bond funds smoother than a three card Monty dealer. 😂 Actual bonds, held to maturity, do not go down in value. Assuming the issuer is solvent, the bonds will pay the interest contracted for. Bond funds or ETFs are the “gamification” of investing: bonds converted to stock-like instruments. In 2022, investors experienced losses on bond funds, even as the bonds held in the funds continued to pay interest without interruption.
Thanks Troy. If you do a follow up video can you explain difference between individual bonds and bond funds. Maybe touch on things we should consider when evaluating bond funds. Thank you again for your efforts.
Great explanation! Do you have or would you consider doing a video on the advantages/disadvantages of using treasury direct vs an online broker? I don’t understand why anyone would pay a commission for a government bond or TBill they hold till maturity for income. Especially short term with the inverted yield curve. I understand you cannot easily sell products on Treasury direct, but if the point of holding bonds is for safety and income, why buy anywhere else? No state taxes on government bonds through treasury direct, right? Your opinion would be greatly appreciated!
Very well explained. Any chance you can make a video outlining the important differences between investing in individual Bonds vs Bond Funds vs Bond ETFs?
Great video but most people buy bond funds not individual bonds When you touch upon bond funds they looked like terrible investments Could you give more insight
Bonds have not done their job, I've been following the markets for over 30 years and 2022 was the worst bond market I think in history, I sure hope that was the bottom and we have more of a bull market in bonds. While rates effect bonds as you said, its also clear that the bond vigilantes control the market and they are telling us rates might go up again, which will further exasperate the sell off. I hate to say it, but we almost need a good stock market correction not tied to what the Fed is doing, to get investors interested in bonds again.
Your explanation is better than TH-camrs who are Bond Advisors. Easy to understand and grasp.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
I really need help, please. Can I ask who the financial advisor you work with is?
The adviser I'm in touch with is 'Carol Vivian Constable, she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. her provides entry and exit point for the securities I focus on.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
Troy…you did an excellent job explaining this! Thanks
Excellent bond summary. Thank you!
Maybe the best Econ 101 bond education I have seen including what I remember from Econ 101. I don’t assume I know more than the professionals we hire to help us with our financial lives but do want to know enough to be well informed. Great video and many thanks. Just hit the follow button.
Best job explaining Bonds I've seen so far...THANKS!
Another super solid video on a misunderstood part of the investment market. Great work, Troy!
(10:50) You switched from bonds to bond funds smoother than a three card Monty dealer. 😂 Actual bonds, held to maturity, do not go down in value. Assuming the issuer is solvent, the bonds will pay the interest contracted for. Bond funds or ETFs are the “gamification” of investing: bonds converted to stock-like instruments. In 2022, investors experienced losses on bond funds, even as the bonds held in the funds continued to pay interest without interruption.
Thanks Troy. If you do a follow up video can you explain difference between individual bonds and bond funds. Maybe touch on things we should consider when evaluating bond funds. Thank you again for your efforts.
This is the best video on bonds I have watched. Well explained in layman language. Thank you very much. I subscribed to your channel.❤
Great explanation of a complicated topic.
Great content, thanks. More please, especially about transaction cost of bonds and best brokerage for consumers to buy/sell corporate bonds.
Great explanation! Do you have or would you consider doing a video on the advantages/disadvantages of using treasury direct vs an online broker? I don’t understand why anyone would pay a commission for a government bond or TBill they hold till maturity for income. Especially short term with the inverted yield curve. I understand you cannot easily sell products on Treasury direct, but if the point of holding bonds is for safety and income, why buy anywhere else? No state taxes on government bonds through treasury direct, right? Your opinion would be greatly appreciated!
Very well explained. Any chance you can make a video outlining the important differences between investing in individual Bonds vs Bond Funds vs Bond ETFs?
Great video but most people buy bond funds not individual bonds
When you touch upon bond funds they looked like terrible investments
Could you give more insight
Good Info. I wasn't aware that a bond purchased at $900 would return $1,000 upon maturity. Why wouldn't this be added to the profit calculation?
Great video. Many people do not understand the bond market. But as yields rise bonds become more valuable as opposed to stocks.
Good explanation, but it still feels like the yields are not worth the effort.
So what is the best funds is best you have access to your money ? & how much is rate ? Who will pay highest interest rate ? ❤
Bonds have not done their job, I've been following the markets for over 30 years and 2022 was the worst bond market I think in history, I sure hope that was the bottom and we have more of a bull market in bonds. While rates effect bonds as you said, its also clear that the bond vigilantes control the market and they are telling us rates might go up again, which will further exasperate the sell off. I hate to say it, but we almost need a good stock market correction not tied to what the Fed is doing, to get investors interested in bonds again.