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Stocks or Bonds?

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Stocks or Bonds?  Reply with quote  

If you were going to invest all of your money, would you choose stocks, bonds, or a combination of the two?

Personally, I'd choose a combination of the two, with a higher percentage in stocks.

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Post Fri Feb 25, 2011 1:35 am
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KatherineLee88
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That depends on your goals.

Short term - primarily bonds.

Long term - primarily stocks.

Right now, about to start a Roth IRA that is 90% stocks, 10% bonds.
Post Fri Feb 25, 2011 1:49 am
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kate032
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I wouldn't put it all in stocks and bonds. You need some in a checking or money market account, just for emergencies.

But for investments, I can't imagine anyone completing ignoring all stocks or all bonds. The ratio is what is important, and that depends upon your goals and your age.
Post Fri Feb 25, 2011 6:26 pm
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RichS
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Stocks are the aggressive growth part of your investments. They can generate growth, as in the share price of the stock goes up in value and they can generate income as in utility stocks that pay a dividend.

Bonds are generally used as fixed income meaning they are designed to produce income rather than growth. They can grow or go up in value but that is not their purpose.

When a person is younger and wants to "grow" their pot of money then stocks would be more appropriate for the long haul.

If you are older and want more protection for your original investment money than bonds may be more appropriate. It all depends on what you are trying to accomplish, your age, your risk level and on and on.

The one thing to keep in mind is that "no" investment will guarantee your money. You will always have something at risk. That is what separates the saver from the investor. Very Happy
Post Fri Feb 25, 2011 9:32 pm
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MrPolarZero
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I think I would go with stocks on this one. They have a longer life span and will be more flexible during investment.

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Post Mon Feb 28, 2011 2:21 am
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bulldogbetter
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Go with bonds, you want to play it safe in this market
Post Fri Mar 04, 2011 6:30 pm
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KatherineLee88
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quote:
Originally posted by bulldogbetter
Go with bonds, you want to play it safe in this market

Why? I'm under the impression that the market is doing just fine.
Post Fri Mar 04, 2011 8:45 pm
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coaster
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quote:
Originally posted by bulldogbetter
Go with bonds, you want to play it safe in this market

Actually, I'm afraid that comment may reflect a poor understanding of the debt market. Consider: bond prices move inversely to bond yields. Bond yields are at historic lows. So right now bonds are pretty poor income investments. And what's going to happen to bond prices when their yields move up? And it's a question of WHEN, not a question of IF. Bond prices have only one way to go from here, and that's down. So, someone who invests in bonds today is going to be sitting on a low-yielding asset whose prices are declining.

Sound like a good investment?

Sound like a safe investment?
Post Sat Mar 05, 2011 12:48 am
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SweatyGirl
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I would take combination of two for a mid-term
Post Sun Mar 06, 2011 3:32 pm
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stepbystep2
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You definitely need to sit down with an adviser and set up your financial goal. It really depends on the time frame, your FIN number, your income etc. There is too many moving parts to just say 40-50, 50-50, 20-80, 45-25-30. And if you decide to sit with someone go over their qualification and really I will ask them how much they have invested, how long they have been invested etc. I think warren buffet said, only in wall street you have 150,000 brokers advising wealthy people on investing, it makes no sense. Hope that made sense in any way.

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Post Tue Mar 22, 2011 1:28 am
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FrankHertz
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In this economy I would recommend bonds if you wanted to take a conservative approach. Of course bonds are always the more conservative choice (with lower returns). But now that the market has so much volatility it seems wise to be on the more cautious side with a lower but more stable return.
Post Sat Mar 26, 2011 11:24 pm
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You might want to keep in mind Market Linked Certificates of Deposit. A recent Bank of the West offering had a 10.2% cap rate. The cap rate is the highest annual return paid based on the performance of a basket of stocks. Interest is paid annually. That comes with FDIC insurance up to applicable limits.

The only downside is the maturity. They tend to range from 5 to 7 years. But you have to give up something to get something. If you constantly rollover one year CD's that shouldn't be a problem for a portion of your money.
Post Fri Apr 08, 2011 6:53 pm
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jennypaul
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According to me diversification is the best option for making investment. Diversification provides you safe investment opportunity. Invest your hard earned money in different source like bonds, stocks, investment funds etc equally, so you can get better returns.
Post Wed Apr 13, 2011 10:37 am
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cccfree
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Depends on how old you are and your risk tolerance. For the most part, stocks are growth investments, or investments that you are willing to take some short term risk in return for some long term gains. You can always depend on larger fortune 500 companies to beat inflation, but barring dividends you're not going to see a lot of income.

Bonds on the other hand are more for a conservative investor, who is looking for income and not looking at seeing their principal grow. There are some municipal bonds that can generate tax free income, and those numbers can be significant if you're purchasing at a high volume.
Post Wed Apr 20, 2011 8:03 pm
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