corporate bonds

[crappieseeker]

Have any of you invested in corporate bonds and if so who is a good company to deal with? I know they fluctuate but what is a general average return on a 5 thousand bond for one year? Are there any other bond types that are better? What about stocks, are any of you invested in any good stocks worth recommending?

[deathb4disco]

The current rate on a 5-yr AAA corporate bond is 2.14%. So, don't quit your day job.

You can see other current yields here:

https://fixedincome.fidelity.com/ftg...cH6A&gclsrc=ds

I think most people are better off ignoring individual stocks and bonds and just buying very broad index funds. That's what I do.

[crappieseeker]

what are the index funds you mentioned?

The current rate on a 5-yr AAA corporate bond is 2.14%. So, don't quit your day job.

You can see other current yields here:

https://fixedincome.fidelity.com/ftg...cH6A&gclsrc=ds

I think most people are better off ignoring individual stocks and bonds and just buying very broad index funds. That's what I do.

[deathb4disco]

what are the index funds you mentioned?

First, I should have said index mutual funds, since that's what they are. They are a type of mutual fund that buys a list (or index) of stocks, bonds, commodities -- almost whatever you want.

The most famous index fund is the Vanguard S&P 500 Index fund. It buys all 500 stocks in the S&P 500 (which includes a lot of very big, well-known companies.)

John Bogle, the founder of Vanguard and a pioneer in index funds, said don't worry about finding a needle in the haystack (that one awesome stock.) Instead, buy the whole haystack.

One index I own is the Vanguard Balanced Index. It owns 60% stocks and 40% bonds. It owns thousands of stocks and thousands of bonds, so you get a lot of diversification. Also, index funds are very cheap -- much cheaper than most mutual funds.

For most people, I think index funds are the best way to invest.

[crappieseeker]

Lets just say I put 15 thousand in for a year in a decent index mutual fund, about how much on average might it gain in a year?

First, I should have said index mutual funds, since that's what they are. They are a type of mutual fund that buys a list (or index) of stocks, bonds, commodities -- almost whatever you want.

The most famous index fund is the Vanguard S&P 500 Index fund. It buys all 500 stocks in the S&P 500 (which includes a lot of very big, well-known companies.)

John Bogle, the founder of Vanguard and a pioneer in index funds, said don't worry about finding a needle in the haystack (that one awesome stock.) Instead, buy the whole haystack.

One index I own is the Vanguard Balanced Index. It owns 60% stocks and 40% bonds. It owns thousands of stocks and thousands of bonds, so you get a lot of diversification. Also, index funds are very cheap -- much cheaper than most mutual funds.

For most people, I think index funds are the best way to invest.

[deathb4disco]

Lets just say I put 15 thousand in for a year in a decent index mutual fund, about how much on average might it gain in a year?

I have no idea. You might lose money. It all depends on the type of fund and what the market does in the next year. Here are the returns for Vanguard funds:

https://investor.vanguard.com/mutual...th-end-returns

As you can see, the returns are all over the place, and many of them are negative.

What is your goal? Are you saving for retirement? Kid's education? Saving for down payment on a house?

A good rule of thumb is don't invest in stocks if you will need the money in the next five years.

If you want safety, a CD or Treasury bond is the way to go, but the interest rates are low.

Do you have debt? Paying off consumer debt (credit cards, student loans, car loan, boat loan) or mortgage debt gives you a safe, guaranteed return equal to the interest rate on the debt. IMO, you should not even consider the stock market if you have consumer debt. Paying off consumer debt is a far better use of your money.

[ET Fish]

I have no idea. You might lose money. It all depends on the type of fund and what the market does in the next year. Here are the returns for Vanguard funds:

https://investor.vanguard.com/mutual...th-end-returns

As you can see, the returns are all over the place, and many of them are negative.

What is your goal? Are you saving for retirement? Kid's education? Saving for down payment on a house?

A good rule of thumb is don't invest in stocks if you will need the money in the next five years.

If you want safety, a CD or Treasury bond is the way to go, but the interest rates are low.

Do you have debt? Paying off consumer debt (credit cards, student loans, car loan, boat loan) or mortgage debt gives you a safe, guaranteed return equal to the interest rate on the debt. IMO, you should not even consider the stock market if you have consumer debt. Paying off consumer debt is a far better use of your money.

I make my living as a Financial Advisor, and this advice is spot on IMO!

[deathb4disco]

I make my living as a Financial Advisor, and this advice is spot on IMO!

Thanks. I'm strictly an amateur, but I've read a lot of good books written by people a lot smarter than me.

[LowePro]

Man none of that looks good!

["G"]

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