The Mind Money Spectrum Podcast

#82. Are you overlooking this stellar asset class?

July 06, 2021 Aaron Agte and Trishul Patel Season 2 Episode 30
The Mind Money Spectrum Podcast
#82. Are you overlooking this stellar asset class?
Chapters
The Mind Money Spectrum Podcast
#82. Are you overlooking this stellar asset class?
Jul 06, 2021 Season 2 Episode 30
Aaron Agte and Trishul Patel

It's easy to be pessimistic about bonds, but they are actually necessary for your portfolio.

In this episode, Aaron and Trishul go in-depth on why you need bonds. Despite low rates of interest and their limited ability to outpace inflation, bonds are essential in all but the most aggressive of portfolios. By understanding the mechanics of coupons, par value, credit quality, and duration, you can start to understand why bonds are a sensible low-risk, low-return investment. When stocks tank, there may be a flight-to-safety, which can drive bonds up. But the biggest benefit of fixed income comes during withdrawals, where bonds can mitigate your sequence of returns risk when it matters most.

Episode References

iShares Total US Bond Market
BND Performance
Yield To Maturity
Duration
Kitces: Bond Tent mitigates Sequence of Returns Risk

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

It's easy to be pessimistic about bonds, but they are actually necessary for your portfolio.

In this episode, Aaron and Trishul go in-depth on why you need bonds. Despite low rates of interest and their limited ability to outpace inflation, bonds are essential in all but the most aggressive of portfolios. By understanding the mechanics of coupons, par value, credit quality, and duration, you can start to understand why bonds are a sensible low-risk, low-return investment. When stocks tank, there may be a flight-to-safety, which can drive bonds up. But the biggest benefit of fixed income comes during withdrawals, where bonds can mitigate your sequence of returns risk when it matters most.

Episode References

iShares Total US Bond Market
BND Performance
Yield To Maturity
Duration
Kitces: Bond Tent mitigates Sequence of Returns Risk

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.