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Joined: 12/12/1998 Posts: 44906
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What's this?

With all due respect, and I mean this sincerely, what is your alternative?

I have spent many, many hours trying to find a good alternative to bonds right now with the following parameters in place:

- I am 50 years old and right now I essentially have enough in my 401k to retire at 60 if I didn't contribute another penny to 401k and earned about 6% per year.
- I don't want to lock up a bunch of money in CD's when interest rate are rising and I could easily get a better rate 6-12 months from now.

Honestly, bonds to me are simply a hedge against a stock market correction. I realize my returns will be somewhere between -2% and +3% in bonds and that sucks, but I am truly in a position where as long as my portfolio doesn't get crushed, I am going to be fine.

So what say you? There are money market funds that will return about 2% but another reason for me sticking in bonds is that I believe I am buying low. They have been down for so long and certainly could go lower, but if they do rebound in the next 10 years I will be sitting pretty.

(In response to this post by HokieForever)

Posted: 02/02/2018 at 9:06PM

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Current Thread:

There's a sale on Wall Street today if you're interested. 20 minutes left. ** -- Hokie360 02/02/2018 3:40PM

The rebalancing I did last week is looking sweet right now. ** -- vt90 02/02/2018 4:49PM

Same here. Against the advice of folks here... -- MP4VT2004 02/02/2018 5:42PM

You should literally be 0% bonds if all you are talking about is retirement ** -- HokieForever 02/02/2018 7:58PM

With all due respect, and I mean this sincerely, what is your alternative? -- vt90 02/02/2018 9:06PM

You are completely different story.... -- HokieForever 02/02/2018 10:11PM

Well thought out and explained response. What’s your background? ** -- hokie-c 02/03/2018 11:43AM

I am still 70% in stocks but with the market run-up ... -- vt90 02/03/2018 10:19AM

Blue chip dividends will give you 3% or 4%. If the market dips and te -- 133743Hokie 02/02/2018 9:22PM

Totally agree. I’ve been 100% stocks from... -- No1Hokie 02/03/2018 08:35AM

Interesting tactic, like it. ** -- HokieForever 02/02/2018 10:11PM

Mind if I ask how you handle medical insurance until eligible for Medicare? -- Hokie360 02/02/2018 10:01PM

I have a special situation. When I sold my business and retired -- 133743Hokie 02/03/2018 08:18AM

Blue chips are paying dividends equivalent to bonds. The bond market is -- 133743Hokie 02/02/2018 6:02PM

So, what's the trigger for moving back to stocks? ** -- Hokie360 02/02/2018 5:45PM

Don't leave them. There is no magic moment that anyone can predict to swap ** -- 133743Hokie 02/02/2018 6:03PM

That's one strategy. Here is another viewpoint... -- MP4VT2004 02/02/2018 6:16PM

He' very contradictory in what he says. Until bonds significantly rebound -- 133743Hokie 02/02/2018 9:07PM

Will probably reinvest the money slowly. -- MP4VT2004 02/02/2018 5:50PM

That's probably the best way to sleep easily. I just figure I'll never be -- Hokie360 02/02/2018 5:56PM

Yeah, I don't do much of individual stock purchasing. -- MP4VT2004 02/02/2018 6:04PM

The market just did my rebalancing for me! :-( ** -- Hokie360 02/02/2018 5:32PM

Could be the 10% correction in play. That would have a bunch more to go... ** -- UTPr0sim 02/02/2018 4:17PM

Besides it appearing to be overheated, is there a reason for a correction? -- HokieSignGuy 02/02/2018 4:19PM

Fed sold 21 billion dollars at the end of January -- lchoro 02/02/2018 5:15PM

Greed turns to fear... -- `lag 02/02/2018 5:05PM

Other reason is extremely likely interest rate increase -- jmanatVT 02/02/2018 4:23PM

Thought the Fed said no increases this time? ** -- EDGEMAN 02/02/2018 4:25PM

This time is always past news, it's what they hint down the road. ** -- `lag 02/02/2018 5:15PM

10 year treasury bond rate climbed to 2.85% today. Highest in 4 years. -- Hokie360 02/02/2018 4:44PM

Is some of the market reaction also not linked to... -- MP4VT2004 02/02/2018 5:46PM

Yeah, this is kinda what I've been reading makes sense. -- `lag 02/02/2018 5:00PM

It isn't cheap money. People are buying stocks instead of bonds because the -- 133743Hokie 02/02/2018 6:09PM

Sure it's cheap money, when interest rates are low its cheap money. ** -- `lag 02/02/2018 6:11PM

No one borrows money to invest in the market. ** -- 133743Hokie 02/02/2018 9:02PM

Maybe on a technicality they do. -- Tafkam Hokie 02/02/2018 10:42PM

It seems, and what it seems to me could be wrong, that the jobs report -- jmanatVT 02/02/2018 4:34PM

Wish I was seeing some of this economic improvement. -- Naelbis 02/02/2018 4:45PM

Just compare your 401k balance today to what is was two years ago. -- Hokie360 02/02/2018 5:15PM

Dang...just did exactly that. -- Tafkam Hokie 02/02/2018 10:37PM

Puts me in the mood for some Steely Dan -- Burke Hokie 02/02/2018 3:51PM

With all due respect, and I mean this sincerely, what is your alternative?

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