You can hear all sorts of great financial planning questions answered on this week’s Stay Wealth San Diego podcast.
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Loren D Mauerhansays
Hi Jon
My Question is why you dont promote the Vanguard total bond fund.
You seen to be Vanguard fan and a fan of a three fund portfolio including the total stock market fund and the total international fund. Why not the total bond fund
TL;DR – Treasuries do better during stock market panics – making them a better portfolio diversifier, resulting a better total portfolio risk-adjusted return when holding Treasuries compared to lower-quality bonds.
Swensen does a great job explaining the shortcomings of bonds that aren’t Treasuries. You can read his book here:
Hi Jon
My Question is why you dont promote the Vanguard total bond fund.
You seen to be Vanguard fan and a fan of a three fund portfolio including the total stock market fund and the total international fund. Why not the total bond fund
Hello Loren,
Thanks for your question. I’ve written about bonds in a few posts:
https://jonluskin.com/why-invest-in-bonds/
https://jonluskin.com/credit-risk-for-interest-rate-risk/
https://jonluskin.com/are-long-term-treasury-bonds-worth-holding-ii/
https://jonluskin.com/are-long-term-treasury-bonds-worth-holding/
https://jonluskin.com/looking-everything-high-yield-bonds-garbage-asset-class/
https://jonluskin.com/cliff-notes-corporate-debt-vs-u-s-government-bonds/
TL;DR – Treasuries do better during stock market panics – making them a better portfolio diversifier, resulting a better total portfolio risk-adjusted return when holding Treasuries compared to lower-quality bonds.
Swensen does a great job explaining the shortcomings of bonds that aren’t Treasuries. You can read his book here:
https://www.amazon.com/Unconventional-Success-Fundamental-Approach-Investment/dp/0743228383
I hope that helps. 🙂