Why Bother With Bonds
A practical guide for beginner investors to build a winning and all-weather portfolio, Rick Van Ness’s Why Bother with Bonds is a time-proven wisdom, and encourages you to take control of your finances. Giving you knowledge on CDs, bonds, and bond funds to manage risks and rewards even during the lowest interest rates, this book will guide you in choosing stocks/bonds allocation, becoming immune to changing interest rates, using CDs and individual bonds, choosing good bond funds, and hedging against unexpected inflation.
"[As] stocks have surged and bond yields have dwindled, investors increasingly ask "Why bother with bonds?" Rick Van Ness takes this question and runs with it in his book sporting this provocative title."
—William J. Bernstein, Author, The Four Pillars of Investing
"In his simply stated and entertaining book, Rick Van Ness eloquently instructs the reader on how to do bonds right - in fact, better than any single book I've read."
—Allan S. Roth, Author, How a Second Grader Beats Wall Street
"If you are a DIY investor . . . you should read this book. It will steer you clear of areas you need to avoid and into where you should be. A quick read filled with valuable info!"
—Robert Wasilewski
"This book should be part of America's high school curriculum."
—Andrew Hallam, Author, Millionaire Teacher
Contents
Foreword
Introduction
Who Should Read This Book?
Start with a Sound Financial Lifestyle
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.
Bonds: Risks and Returns
How To Reduce Risk From Interest Rates Changes
How To Reduce Risk From Unexpected Inflation
Build the Bond Portion of Your Portfolio
Start with Your Goals
How Much Risk is Right For You?
The Importance of Low Cost
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
Frugal Means Stingy