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Why Bother With Bonds: A Guide To Build All-Weather Portfolio Including CDs, Bonds, and Bond Funds--Even During Low Interest Rates
A practical how-to guide for every investor.
For ordinary investors who want to build an all-weather portfolio.
It is time-proven wisdom, and encourages you to take control of your finances. Learn how to use CDs, bonds, and bond funds to manage risk/reward even during low interest rates.
You will learn:
How to choose your stocks/bonds allocation
How to become immune to changing interest rates
When to use CDs and individual bonds
How to choose a good bond fund
How to hedge against unexpected inflation
Contents:
Foreword by Larry Swedroe
Introduction
- Who Should Read This Book?
- Start with a Sound Financial Lifestyle
Why Bother With Bonds?
- Stocks are risky in the short-run, and the long run too!
- Bonds Make Risk More Palatable
- Bonds Can Be A Safe Bet
- Bonds Are An Attractive Investment Diversifier
Life Is Complicated. Bonds Are Not.
- What is a Money Market Fund?
- Are CDs Better Than Bonds?
- What Are Bonds?
- What is a Bond Ladder?
- Individual Bonds or a Bond Fund?
Bonds: Risks and Returns
- Yield, Price And Making Comparisons
-- How To Compare Individual Bond Returns
-- How to Compare Bond Fund Returns
-- Total Return: To Measure And Compare Performance
- How To Reduce Risk From Interest Rates Changes
-- Duration: The Point of Indifference to Interest Rates
-- Duration: The Measure of Sensitivity to Interest Rates
- How To Reduce Risk From Unexpected Inflation
-- Real versus Nominal Interest Rates
-- Why Include TIPS In Your Portfolio?
- Credit Quality or Default Risk
Build The Bond Portion Of Your Portfolio
- Start With Your Goals.
- How Much Risk Is Right For You?
-- Understand How Much Risk You're Taking
-- Take Your Risk In Stock Market, Not Bond Market
-- How Much in Bonds? How Much in Stocks?
-- Your Needs Change Over Time
- The Importance of Low Cost
-- How Much To Diversify Bonds?
-- The Importance of Low Cost
-- Five Low-Cost Strategies You Can Do Yourself
- Taxes Matter
- Example Portfolios (both good and bad)
Common Misconceptions Important to Correct
- Stocks Are Safer In The Long Run
- Holding a Bond (or CD) to Maturity Eliminates Risk
- Stocks Are Safer Than Bonds
- The Best Funds Have The Most Stars
- A One Percent Fee Is Small
- Rising Interest Rates are Bad for Bond Holders
- You Can't Beat the Market Using Index Funds
- Use Multiple Investment Companies To Diversify
- You Need Many Mutual Funds to Diversify
For ordinary investors who want to build an all-weather portfolio.
It is time-proven wisdom, and encourages you to take control of your finances. Learn how to use CDs, bonds, and bond funds to manage risk/reward even during low interest rates.
You will learn:
How to choose your stocks/bonds allocation
How to become immune to changing interest rates
When to use CDs and individual bonds
How to choose a good bond fund
How to hedge against unexpected inflation
Contents:
Foreword by Larry Swedroe
Introduction
- Who Should Read This Book?
- Start with a Sound Financial Lifestyle
Why Bother With Bonds?
- Stocks are risky in the short-run, and the long run too!
- Bonds Make Risk More Palatable
- Bonds Can Be A Safe Bet
- Bonds Are An Attractive Investment Diversifier
Life Is Complicated. Bonds Are Not.
- What is a Money Market Fund?
- Are CDs Better Than Bonds?
- What Are Bonds?
- What is a Bond Ladder?
- Individual Bonds or a Bond Fund?
Bonds: Risks and Returns
- Yield, Price And Making Comparisons
-- How To Compare Individual Bond Returns
-- How to Compare Bond Fund Returns
-- Total Return: To Measure And Compare Performance
- How To Reduce Risk From Interest Rates Changes
-- Duration: The Point of Indifference to Interest Rates
-- Duration: The Measure of Sensitivity to Interest Rates
- How To Reduce Risk From Unexpected Inflation
-- Real versus Nominal Interest Rates
-- Why Include TIPS In Your Portfolio?
- Credit Quality or Default Risk
Build The Bond Portion Of Your Portfolio
- Start With Your Goals.
- How Much Risk Is Right For You?
-- Understand How Much Risk You're Taking
-- Take Your Risk In Stock Market, Not Bond Market
-- How Much in Bonds? How Much in Stocks?
-- Your Needs Change Over Time
- The Importance of Low Cost
-- How Much To Diversify Bonds?
-- The Importance of Low Cost
-- Five Low-Cost Strategies You Can Do Yourself
- Taxes Matter
- Example Portfolios (both good and bad)
Common Misconceptions Important to Correct
- Stocks Are Safer In The Long Run
- Holding a Bond (or CD) to Maturity Eliminates Risk
- Stocks Are Safer Than Bonds
- The Best Funds Have The Most Stars
- A One Percent Fee Is Small
- Rising Interest Rates are Bad for Bond Holders
- You Can't Beat the Market Using Index Funds
- Use Multiple Investment Companies To Diversify
- You Need Many Mutual Funds to Diversify
171 pages, Kindle Edition
First published October 30, 2014
161 people are currently reading
309 people want to read
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Community Reviews
Displaying 1 - 13 of 13 reviews
March 6, 2015
Most people know what stocks are, and what the risks are associated with them. Fewer people seem to have substantial information regarding bonds, though.
Rick Van Ness's "Why Bother With Bonds: A Guide To Build An All-Weather Portfolio Including CDs, Bonds, and Bond Funds" includes all the information potential investors need regarding what bonds are and how they work. Included is information regarding the safety of bonds, how bonds compare to Certificates of Deposit, what bond ladders are, tax matters, and credit quality versus default risk among other things.
This book is a must-have for those wanting to learn more about bonds or those who are looking to diversify their investments, but do not know how.
I won a copy of this book from the Goodreads.com website.
Rick Van Ness's "Why Bother With Bonds: A Guide To Build An All-Weather Portfolio Including CDs, Bonds, and Bond Funds" includes all the information potential investors need regarding what bonds are and how they work. Included is information regarding the safety of bonds, how bonds compare to Certificates of Deposit, what bond ladders are, tax matters, and credit quality versus default risk among other things.
This book is a must-have for those wanting to learn more about bonds or those who are looking to diversify their investments, but do not know how.
I won a copy of this book from the Goodreads.com website.
November 19, 2017
Excellent!
Great overview of bonds, helped me truly understand this important part of my portfolio for the first time. In line with many other well reasoned DIY books I have read (keep costs low, diversify, allocate appropriately).
Great overview of bonds, helped me truly understand this important part of my portfolio for the first time. In line with many other well reasoned DIY books I have read (keep costs low, diversify, allocate appropriately).
September 29, 2020
Great review of why bonds are an important part of a portfolio. Also discusses why bonds are not totally risk free, and how we can minimize this risk. Goes over basic types of bonds and how to invest in them.
December 29, 2021
his view on bond duration and interest rate risk is worth the read
the rest of the book is a hash on already well known concepts in investing. Its a good starter book for beginners.
the rest of the book is a hash on already well known concepts in investing. Its a good starter book for beginners.
February 19, 2019
A slow start and a bit of a folksy style but very good content and highly informative
January 29, 2016
Worthwhile
Van Ness did a pretty good job explaining bond properties and asset allocation fundamentals. But, he was sloppy in describing bond and stock fund tax efficiencies and seems to have not got it right. There are some very good portfolio examples, but also some clumsy writing, e.g. twins sidebar near position 590. Overall, I liked Van Ness's work and found it worthwhile.
Van Ness did a pretty good job explaining bond properties and asset allocation fundamentals. But, he was sloppy in describing bond and stock fund tax efficiencies and seems to have not got it right. There are some very good portfolio examples, but also some clumsy writing, e.g. twins sidebar near position 590. Overall, I liked Van Ness's work and found it worthwhile.
November 8, 2015
A decent book that covers many topics and areas regarding stocks and bonds. The author does an excellent job explaining, teaching, and guiding the reader through all of the important facts and issues. Though this book can't really be applied to my life (as of the yet), it is a very good how-to know-how for those who are interested in this area and need a little brushing up on it.
April 3, 2015
I won this through a Goodreads giveaway. For me, this book was a great introduction to the world of bonds. Whether you're a beginner, like me, or have advanced knowledge of stocks and bonds, I believe everyone can learn something from this book. Extremely well written, organized, and easy to understand, you'll walk away a wiser investor. I definitely recommend this book.
December 4, 2014
Goodreads winner.
A well organized reference book for the individual investor on the viability of bonds during times of low rates. Clear, detailed, and well explained. Educates on fixed-income investing. Saving and investing should be taught as part of a high school education.
A well organized reference book for the individual investor on the viability of bonds during times of low rates. Clear, detailed, and well explained. Educates on fixed-income investing. Saving and investing should be taught as part of a high school education.
March 12, 2019
Fairly short and to the point. Discusses types of bonds and definitions related to them. I've been 100% stocks for some time and have been considering adding 20% bonds, now I am sure of that decision.
March 22, 2024
Info found no where else
Lots of simple diagrams that explain complex concepts. Still includes the subtles and advanced subjects. Explains, recommends fixed income strategies and gives detailed examples. Only real flaw was written when interest rates were low and rising.
Lots of simple diagrams that explain complex concepts. Still includes the subtles and advanced subjects. Explains, recommends fixed income strategies and gives detailed examples. Only real flaw was written when interest rates were low and rising.
February 10, 2015
Great intro to investing in bonds and bond funds
September 28, 2015
Good primer. A few conclusions that are not really well supported. But, we do all need bonds
Displaying 1 - 13 of 13 reviews