I'm in my early 30s, and bonds feel like the right move over stocks
After getting burned pretty badly on stocks last year, I've been sticking to bond ETFs. They're stable, tax-efficient, and the rates are decent these days, so I'm pretty satisfied.
Anyone have recommendations for bond ETFs? I'm looking mainly at short-term government bonds and corporate bonds, but I'm open to other ideas.
9 answers
Yeah, stocks are really tough.
I also switched to bond ETFs and I'm pretty satisfied lol
Recommend some short-term treasury bond ETFs, I've also gotten interested.
After losing 30% on stocks last year, I switched to bonds. I'm accumulating SHY and VCIT, and it seems fine.
Since long-term bonds are more sensitive to interest rates, I think it's better to focus on short-term ones. BIL or SGOV seem like good options.
But bonds also drop in price when interest rates rise. Lately there are expectations of rate cuts, but it's not certain.
It's true that corporate bond ETFs have high yields even with default risk. But personally, I think government bonds are more stable.
Are you referring to separate taxation when you say the taxes are low? But dividend income tax is the standard one.
Oh, bond ETFs are good. I'm accumulating a mix of AGG and BNDW. Should be fine for the long term.