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Hobologist posted:Unless you're in the top tax bracket, you don't need municipal bonds. US muni bonds also have a lower default rate than higher yield corporate bonds. So two main selling points are good yield for higher brackets and also less risk compared to other US bond market investments. Of course the risk thing goes back into the classic saying of past performance is no promise of future behavior. http://www.nhhefa.com/documents/moodysMunicipalDefaultStudy1970-2011.pdf For younger people I would recommend to stick a with a higher risk level, main difference is it moves more money over to international markets. etalian fucked around with this message at 01:58 on May 27, 2014 |
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May 27, 2014 01:51
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kansas posted:The reaction from people is that you are advocating trying to time the market. You didn't say that in general keeping 10-15% of your assets in non-equities is a tool to increase a risk-adjusted rate of return (which is true). You said that equities are overvalued and there is an inevitable crash coming. There have been countless empirical studies going back for decades showing that on average market timing results in lower performance. Yeah vanguard also found that the dollar cost averaging tactic isn't any safer than a lump sum investment.
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Jun 29, 2014 19:31
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Ani posted:Can you link to this? (not that I doubt you) Vanguard did a study on lump sum investment and dollar cost averaging below: https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/InvResDollarCostAve Dollar cost average was somewhat effective at controlling short term risk but over the standard long term investment window didn't do as well. Bloody Queef posted:Yeah, Bogel only has on the order of 80mm net worth. Compare him to someone like Peter Lynch who was all about active management and he's got almost 400. Mainly because Bogel never demanded big compensation packages and also gives away most of his money to charity. etalian fucked around with this message at 16:46 on Jul 4, 2014 |
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Jul 4, 2014 16:43
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