Ah, bonds. They’re quite the investment instrument. In a world of volatile stocks, bonds offer safety of principal – at least if you’re doing it right. That means shunning corporate bonds in favor of Treasury bonds, which includes shunning high-yield bonds. Yes, Treasury bonds are where the safe portion of your investments should lay – […]
Investing
Why California Rental Property is Not a (Historically) Great Investment
EXECUTIVE SUMMARY Investors in illiquid real estate should be compensated with investment returns above what U.S. stock market investors receive. This is because real estate is illiquid – whereas U.S. large cap stocks are highly liquid. Historically, U.S. stocks market investors received an investment return of roughly 10% per year. Therefore, investors in illiquid real estate should […]
Story People
Recently, I was wasting some time on the Twitternets. I came across the following exchange: Every single academic study ever done has concluded that REITs outperformed private real estate investment. – Dr. Brad Case — Blair H duQuesnay (@BlairHduQuesnay) June 21, 2018 Interesting. Please forward the research Not surprised though. More and more research is […]
Just Say “No” to Dividend Investing
Getting cash payments from your investments makes a great story. But, when it comes to focusing on dividend-paying stocks, the numbers simply aren’t there. There are better investments available, offering: Higher investment returns Greater diversification Lower cost Fewer taxes More flexibility In this episode of the Stay Wealthy retirement podcast we talk about all of the […]
There’s So Much Good Information Out There
You know you’ve made it when you’re on a podcast. I say this joking, as I now have the pleasure of announcing my new role as co-host on the Stay Wealth San Diego podcast. You can check out the episode below: As I was reviewing the episode (you’re allowed to listen to your own podcast, right?), it […]
Looking at Everything: Or Why High-Yield Bonds are a Garbage Asset Class
I remember when I was first learning about investing. I was having a conversation with another advisor about high-yield bonds. His approach went something like this: Live off the coupon! If you hold the high-yield bonds forever, who cares if the bonds fluctuate in value!? Don’t Evaluate Assets in Isolation The above logic is rife […]