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Personal Finance and Investing

PoindexterOglethorpe

(27,113 posts)

12. I am 73 years old myself.

Reply to doc03 (Reply #11)

Wed Mar 16, 2022, 07:43 PM

Mar 2022

And where in the world are the bonds that pay 25% interest, as referenced in the OP? Or even 7.12% that you've named?

I'm not saying a person should never buy bonds, But they should be no more than 40% of your portfolio. Bonds are risky in a very different way than stocks, because the interest they pay is so low, that you invariably lose to inflation. Even Warren Buffet thinks people should have a very low percentage of their money in bonds. https://www.investopedia.com/articles/personal-finance/121815/buffetts-9010-asset-allocation-sound.asp

And overall, a 60% stock and 40% bond portfolio is the safest and most profitable.