Some time ago, I realized that I wanted better downside investment "protection" than what I was seeing at the time. The pandemic made me realize that I needed to think outside the box a bit to harden up assets and responsibly manage taxes.
I bought a whole life policy w/a cash rider which, once funded, can help me buy, borrow and die and seems at least a bit easier (and assured) that putting it in something like stock market dividend mutual funds. Seeing what, at the time, looked like a terrible stock market forecast and everything down this year, I did the requisite I-Bond investing, liquidated a few of the taxable acct worst offenders and consolidated my retirement accts for ease of management. (I moved a miserably small managed pension away from those crooks @ AIG and into my 401K. I'm 43, and simply won't tolerate bailout malfeasance from those jerks ever again).
All this movement has made it easier for me to see what kind of shape I'm in, since Social Security seems to always be one step away from death's door.
I basically decided, that for the low amount of protection they offer, in the pandemic environment, bonds were useless to me. I could find better investments in terms of tax treatment, currently better rates in I-Bonds, and can frankly show a much more precipitous loss via crypto if I need to. I also am actively working on student loan debt and may return to school in the future.
(I'm a soon to be 44 y.o. SINK)
I have the rough following picture:
Taxable Investments-15K Various targeted savings-approx. 15K 403B-40K 401K-30K Roth IRA -6K I-Bonds-2K ESPP-1K Whole Life Ins (not touchable) - 88K value Mortgage-53K owed, (approximate worth 190K)
Mohela-53K @ 6.6%
(Yes, my student loans cost almost as much as the condo. If I had any hope of ever buying another home in the current market, I'd sell it and be out of student loan debt tomorrow, but moving in with my parents isn't an option and I need a roof over my head, so here I sit. I have been paying Mohela down from a high of 69K during this 0% interest.)
All of this is necessary because I basically have no other taxable deductions. In looking at all of this, I see no reason why any of my investments outside of whatever managed portion exists should be in stocks. SS says I've got another 20-25 yrs in the market, and , if Mohela has their way, it will be at least that-though I am doing my best to aggressively pay the student loans down ASAP.
Am I missing anything here? I don't see what advantage bonds will give me in pretty much any account. My index funds in all of my investment vehicles are bloody enough, but I've been expanding my cost basis savings incrementally.
All this said, I really don't understand what part, if any, bonds have to play in my portfolio currently. Moreover, I don't really see a point in ever buying any.
Thoughts?
Submitted September 05, 2022 at 05:39AM by turn8495 https://ift.tt/fxmDjXi
