Author Topic: Investment Culture  (Read 1336 times)

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Offline wilber

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Re: Investments
« Reply #15 on: February 11, 2017, 04:58:12 pm »
I know that for the longest time the suggested ratio was about 30-40% stocks, and the rest in bonds when you were older. But I don't know that this still holds given the absurdly low rates you get from bonds, and the way bonds have been falling in the face of rising interest rates.

It depends on your risk tolerance and how much cash flow you need. I look for solid companies that pay a decent dividend when I buy stocks. A capital gain is nice but you have to sell to get it and then you are faced with buying something to replace it. I don't sell unless there is a good reason to. With bonds it depends on how much you pay for one and its yield. I look at bonds as income generators, not investments. I will get face value when it matures, so how much is it going to give me in the mean time.

I've been told interest rates are going to rise for at least ten years now and the opposite has happened. I'll probably be dead before they start rising. It depends on where you are in life.
"Never trust a man without a single redeeming vice" WSC