Gosh, on the equity side, the recommendations offered are real dog bones. Run the chart on them and compare them to SPY, DIA, and QQQ. Woof, woof!
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Morningstar endorsing a load A fund is a disgrace, that's why I don't bother with them. Stick to Vanguard index mutual funds even in a taxable acct and index ETFs.
Some people cannot stomach much volatility and thus want that stability (even if it’s a decline in real terms). Looks like FTBFX has a T12M distribution of about 3%, which is just enough for some investors. But I think your overall sentiment is correct, though: If you understand long-term market trends, you may be rewarded for bearing just a little more risk for much higher yields in places like equities or balanced funds.
If your bank is charging you fees to keep money there, you need to find a new bank...that's ridiculous. Also, there are plenty of cash "equivalent" investment vehicles other than a standard bank account; CDs and money market accounts, for example. Finally, inflation hedging is why you don't keep ALL of your money in cash. The stock portion of you portfolio is responsible for outpacing inflation and even bonds will keep pace with inflation over time, 5+ years. The cash portion is simply to hedge shorter term risk.
Gosh, on the equity side, the recommendations offered are real dog bones. Run the chart on them and compare them to SPY, DIA, and QQQ. Woof, woof!
Morningstar endorsing a load A fund is a disgrace, that's why I don't bother with them. Stick to Vanguard index mutual funds even in a taxable acct and index ETFs.
Why buy any of these funds when rates are going up? The share price of FTBFX has not increased since 2002. And the yield produces little income.
Some people cannot stomach much volatility and thus want that stability (even if it’s a decline in real terms). Looks like FTBFX has a T12M distribution of about 3%, which is just enough for some investors. But I think your overall sentiment is correct, though: If you understand long-term market trends, you may be rewarded for bearing just a little more risk for much higher yields in places like equities or balanced funds.
Great thanks
You won't lose cash? How about inflation and fees associated with keeping cash in a bank.
If your bank is charging you fees to keep money there, you need to find a new bank...that's ridiculous. Also, there are plenty of cash "equivalent" investment vehicles other than a standard bank account; CDs and money market accounts, for example. Finally, inflation hedging is why you don't keep ALL of your money in cash. The stock portion of you portfolio is responsible for outpacing inflation and even bonds will keep pace with inflation over time, 5+ years. The cash portion is simply to hedge shorter term risk.
Thank you VERY much for these videos Morningstar!
Helpful Info, should have a million views!
Very informative as always