If you’re young, bonds are pretty pointless.
I’m nearing my FIRE goal, so I’ve started adding bonds (Swiss corporate bonds because, well, I’m Swiss). Even then, I probably won’t go over 15-20%.
If you’re young and have 30 years ahead of you, just keep buying stocks—especially when the market tanks.
A 70/30 mix helps with automatic rebalancing. If stocks drop, you sell bonds and buy more stocks. If stocks pump, you sell some and move into bonds.
It’s a simple way to manage risk without trying to time the market.
70/30 stocks and Bitcoin is the new move.
Valentine said:
70/30 stocks and Bitcoin is the new move.
Yep, I have my Roth IRA set to auto-buy 10% FBTC.
Bonds crash too. If you want something safe, Treasuries and CDs are way better, especially in an IRA where there’s no tax on interest.
If you’re young, bonds make no sense unless you’re already rich and have some serious health issues.
You should focus on growth, while older investors worry about preserving assets. A lot of people think bonds are a safety net, but they don’t always protect you when markets tank.
When I started investing, it was right before the 2008 crash, and honestly, staying in stocks worked out way better than bonds ever would have.