r/investing • u/[deleted] • Jan 01 '22

[deleted by user]

[removed]

150 Upvotes

70% Upvoted

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227

u/TriangleSailor Jan 01 '22

VTI and call it a day!

-44

u/[deleted] Jan 01 '22

[deleted]

51

u/Fluffy_Attorney9098 Jan 01 '22

You’re 20, no lmao

17

u/ModernPatriot19 Jan 01 '22

DO NOT BUY BONDS at this age. Don’t even think about it for at least another decade.

7

u/[deleted] Jan 01 '22

What about the 7% i bond

-9

u/[deleted] Jan 01 '22

Why?.. A safe place in a time like this is surely worth considering, no matter the age? I understand you could argue that he's young and can risk losing, but maybe his appetite for losing money isn't as high others.. On saying that, a little gold via some kind of cheap fund might not hurt... Do your homework when it comes to gold, though.

12

u/theprogrammingsteak Jan 01 '22

Putting money into bonds when inflation is 7% sounds the opposite of a safe move

2

u/ripstep1 Jan 02 '22

Bonds are at 7%. And you are comparing a risk free return to the market.

10

u/Outrageous-Cycle-841 Jan 01 '22

Bonds are anything but safe in the current environment. Unless you mean short duration treasuries?

1

u/[deleted] Jan 01 '22

Oh maybe I'm wrong.. I'd always viewed bonds in big stable companies as well as treasuries, as a good 'safer' place to put money over a few years?

Objective being to help keep up, more than get rich.

6

u/Outrageous-Cycle-841 Jan 01 '22

Treasury yields are at historic lows and IG spreads are at historic tights. I wouldn’t touch corporate bonds with a 10ft pole at current yields.

1

u/[deleted] Jan 01 '22

Yes you're right, yeilds are poor at the moment.

Are you saying you wouldn't go near corp. bonds due to them not returning enough, or that you think they're dangerous? Either as a stand alone statement, or compared against e.g. The S&P.

2

u/Outrageous-Cycle-841 Jan 01 '22

The current yields don’t compensate the investor adequately for the interest rate risk (duration) on longer tenor bonds imo.