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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Where to invest cash after stocks||Date: 5/21/2004 9:55 AM|
|Author: benhancockjr||Number: 10165 of 36087|
NO MUTUAL FUNDS. I like being in control.
Does this include index funds? Honestly, I would feel less in control if owned only a handful of stocks, and probably couldn't sleep at night from fear that I picked the wrong ones. I'd rather just take what the market gives me and call it a day.
WRT bonds, you can get some great advice on this board, and I'm sure others will be along soon that know a heck of a lot more than I do. At any rate, I personally use Vanguard Short Term Corporate as my bond component. Expenses are rock-bottom and the durations are short, and this will hopefully mitigate some of the interest rate risk should interest rates climb higher
If you're really adverse to mutual funds, you can buy individual treasuries of varying maturities, TIPS (which are indexed to inflation - also of varying maturities 5, 10, and 20-year). TIPS are auctioned off several times a year depending on the duration. Check out TreasuryDirect.com for more information.
If you're interested if buying individual corporate bonds, I don't have any experience in this area, so I'm sorry I can't help you out more.
Again, I would strongly suggest reconsidering index funds. TMF has an index funds board where you can get more information. I would also recommend reading Bill Bernstein's, "Four Pillars of Investing". He presents a fairly strong case for index funds and against stock picking.
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