The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/unless-you-have-a-much-larger-amount-to-invest-28315532.aspx

Subject:  Re: individual bonds in IRA Date:  2/18/2010  11:37 AM
Author:  jackcrow Number:  30080 of 35909

Unless you have a much larger amount to invest, 35% of 50K is way too small to get a safe diversity in bonds.

I strongly disagree with this advice. If 10 stocks is a reasonable diversity than 10 bonds is reasonable diversity; any way you look at it 1/10 of the assets allotted are exposed to the risks of a single holding. Its this logic that forces people to put the capital that they want to invest in bond like objects to protect principal and earn a bit of a return into asset classes