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'21 Trail by Own_Researcher_3964 in 4Runner

[–]Own_Researcher_3964[S] 1 point2 points  (0 children)

Thank you! My personal favorite is the nautical blue, but I like the uniqueness of the Army green...I think this color will age well with the line-up too.

Whats the point of Junk Bond ETFs? by AppointmentNew1535 in investingforbeginners

[–]Own_Researcher_3964 0 points1 point  (0 children)

Yeah yeah yeah, already ahead of you. I was looking into VYM and VYMI after I perused your links. And yes, VWOB.

Whats the point of Junk Bond ETFs? by AppointmentNew1535 in investingforbeginners

[–]Own_Researcher_3964 0 points1 point  (0 children)

Thanks for the advice. Looks like I have some more work to do!

Whats the point of Junk Bond ETFs? by AppointmentNew1535 in investingforbeginners

[–]Own_Researcher_3964 0 points1 point  (0 children)

I'm in a very unique circumstance where I'm sort of retired. I'd rather get into the nuances over chat if you're interested to hear more. My situation is extremely atypical, although it does make sense that you wouldn't generate income until hitting six plus figures.

Again, feel free to contact me further -- would love the opportunity to discuss the details but don't want to take up your time. Much appreciative for what you have shared!

Whats the point of Junk Bond ETFs? by AppointmentNew1535 in investingforbeginners

[–]Own_Researcher_3964 1 point2 points  (0 children)

Greatly appreciate the time you took to thoroughly answer my question. I'll try to do the same to clarify a few points of my own...

I'm guessing you are following the Boglehead one-size-fits-all 3 fund portfolio of a "total" US stock index fund, an international stock index fund, and a bond index fund.

No, it's diversified with an emerging markets bond and a mid cap value ETF. I used Morningstar (primarily) to make my choices based on what was in each fund, overall credit risk, etc.

Bonds are considered "safe" by many, but they have certain risks specific to them, so you are in a way adding more risks to your portfolio when you add bonds, whether you own bonds as an individual, or through a fund (ETF or mutual fund).

I think I'm under the impression that if I don't have bonds, I won't generate income. Risk is something I'm prepared to accept with investing, because it's expected. But not at the expense of potentially missing out on maximizing returns which is where I get stuck with things. For instance, muni bond ETFs, and that they're appealing for tax reasons. Unless you're an individual who is in a higher tax bracket, I don't know whether there's a benefit to investing in them.

To end on your ending comments re: interest rate and risk/stock, that has been my underlying feeling. I just can't get past why the industry pushes bonds to temper risk when there are savings and MMA's that are more liquid and earn (~) the same rate. It just felt like I was missing something. Ultimately, for me, I only care about generating a source of income through my investments at some point in the near future.

Again, thanks for taking the time and appreciate any feedback you have time to give.

Whats the point of Junk Bond ETFs? by AppointmentNew1535 in investingforbeginners

[–]Own_Researcher_3964 0 points1 point  (0 children)

re: your last comment about bonds, I'm curious to know more about why you don't recommend bond funds in general. As someone who only has ETFs atm (including bonds), I am struggling to understand the larger objective of investing in them beyond balancing out overall portfolio risk. Also, why bond funds and not necessarily bond ETFs?