EPISODE · Feb 6, 2024 · 25 MIN
Should Aggressive Investors Hold Bonds? (Listener Question)
from The Fiscal Physical Retirement Podcast · host Aaron Hoisington & Ryan Nelson
Listener Eric wants to know: if a stock-only fund might perform better long term, why hold any bonds at all? Ryan answers using a Titanic lifeboat analogy and the math of loss recovery to show why even aggressive investors benefit from some bond exposure. A 50% loss requires a 100% gain just to break even, and bonds act as the cushion that keeps you in the game long enough for that recovery to happen.Ryan also shares a Warren Buffett quote on why the first rule of investing is simply not to lose money, and walks through how to size a bond allocation based on goals and time horizon. If you consider yourself an aggressive investor and have wondered whether bonds are even worth it, this episode makes the case plainly.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!
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Listener Eric wants to know: if a stock-only fund might perform better long term, why hold any bonds at all? Ryan answers using a Titanic lifeboat analogy and the math of loss recovery to show why even aggressive investors benefit from some bond exposure. A 50% loss requires a 100% gain just to break even, and bonds act as the cushion that keeps you in the game long enough for that recovery to happen. Ryan also shares a Warren Buffett quote on why the first rule of investing is simply not to...
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Should Aggressive Investors Hold Bonds? (Listener Question)
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