The best
Bonds Investing books:
Reddit reviews
From 3.5 billion Reddit comments
The best of Bonds Investing books by number of unique Reddit comments:
Top Reddit reviews mentioning Bonds Investing books:
DIY.
​
Vanguard Index funds:
​
VTSAX
​
VBTLX
VTIAX
​
Learn about:
​
1.)allocation (how much you put into each fund). (simple rule of thumb is your age as a % in bonds, rest in US/INTL).
​
2.) Cost Averaging (Buy a fixed amount each month)
​
3.) Rebalancing (Once a year look at your allocation, sell/buy between funds to return to your proper allocation).
​
4.) DON'T TOUCH IT. Just fucking leave it. Don't look at the markets, don't fucking sell and buy bitcoin. Don't listen to any of your idiot friends about a hot stock. Don't touch it.
​
5.) Read this book : https://www.amazon.com/Millionaire-Teacher-Wealth-Should-Learned/dp/0470830069 It explains everything I've just said in a bit more detail.
Sorry for your loss..
Given your financial position (able to support yourself through school without borrowing) I would invest in ETFs, something like a Vanguard ETF with a minimal MER. I'd also transfer that mutual fund over to the same ETF as the management fees are typically too much, eating away at your returns. Even though the management fees may seem small, compounded over X years to retirement at age 21 is seriously significant..
If you invest this inheritance at your age and follow something like the 4% rule, you'll be retired before most people even start saving for retirement..
If you don't really follow what I'm saying, I highly suggest reading Millionaire Teacher.
https://www.amazon.ca/Millionaire-Teacher-Wealth-Should-Learned/dp/0470830069
> Yeah, that is why his book sells more than $1000 at ebay and Amazon !!!
Wait, seriously?
https://www.amazon.com/Margin-Safety-Risk-Averse-Strategies-Thoughtful/dp/0887305105
Yep, it's $1,190.54. Holy cow.
Taking profit when your asset allocation gets out of whack is normal. So is buying when it gets out of whack. If BTC goes down 50% and the S&P goes up 20%, then an asset allocation strategy would have you sell some S&P to buy more BTC. I recommend this book to explain more....
https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/1260026647
That is not true. mutual fund / FII would have bought even if they had given 10-15% discount. Just like many other companies. Thats exactly why everyone is puzzled. There are many ways to steal money from shareholders. Many of them are legal. So promoters ethics are important. Its also important that we don't force ourself to ignore acts which cause reasonable suspicions just because we are shareholders. A good book on the topic.
My brother recommended Millionaire teacher and it all made a lot of sense. Really just reading a lot, doing research on a ton of topics not just finance. But the more you know... Also personal experience, living in a group house with a bunch of young adults who make bad choices is a big motivator on what not to do.
https://www.amazon.com/Millionaire-Teacher-Wealth-Should-Learned/dp/0470830069
https://www.amazon.com/dp/1260026647/ref=cm_sw_r_em_api_glt_fabc_SMWW0NV0WQSRC3CMWRA2 This book is a bit old now, but I read it forever ago and it’s stuck with me. What this book does is explain WHY you want different asset classes in your portfolio and what is the purpose of rebalancing. You can find plenty of model portfolios online for free, but this guy will explain why with lots of historical data to back it up.
I highly recommend this book: https://www.amazon.com/Common-Sense-Mutual-Funds-Anniversary/dp/0470138130
It is no nonsense and BS. A lot of info out there will sugar coat the market, acting like everyone can beat the market if they wanted, but that isn't true. This book lays investing itself out straight so you can understand it at its core. It goes into great detail, so it isn't a quick read or cliff notes version, but at your age, you can take you time and read the book in little bits. Take a year or more to if you need, but it is a great reference book to have on hand.
ETFs seem to occur at market tops - serious. Have you seen ticket MJ?
A famous value investor and hedge fund manager wrote a book that I have a copy of. It is out of print and people want a few grand for it (https://www.amazon.com/Margin-Safety-Risk-Averse-Strategies-Thoughtful/dp/0887305105) discussed this.
Most people here, myself included would be happy to share their favorites or portfolios. Some of mine are non public but I have CMPS MMED SHRM TRIP(CN) BNO(AU) FTRP. I missed adding CYBN...
Azért megy fel, mert többen vesznek, mint eladnak és fordítva.
Egyébként azt a könyvet elég sokan ajánlják, meg van nekem is, de még nem sikerült elolvasnom: https://www.amazon.com/Why-Stocks-Go-Up-Down/dp/0989298205
From the article you linked:
"While you can invest in any sector of the bond market either through a bond fund or by buying individual bonds, the two are radically different investments."
Annette Thau, who the quote is from, wrote an excellent book. Here
Anyway, the point that I want to make is that she calls bonds/bond funds "...radically different investments". It is not about one being better than the other, it is about which one fits one you are trying to accomplish. And as I said in my other post in this discussion, living off a portfolio is different from managing one for long term growth.
You can buy Treasuries through a normal brokerage account. Check fees, but at the brokerage that I use there is no cost as long as I let them mature.
You might want to read this: The Bond Book
No, you would expect positive correlation over the course of a decade. The primary benefit to diversification is when things move in generally the same direction (up) over the long term, but have bouts of uncorrelation or negative correlation in the short term.
That's the whole premise behind the efficient frontier, and why you can add stocks to an all bond portfolio and increase returns while decreasing volatility at the same time. And vice versa, by adding a little bit of bonds to an all stock portfolio you decrease volatility a bunch without taking much of a hit on returns.
William Bernstein wrote a great book on the subject.
But for the last decade, it seems like everything has moved in lockstep. So all you're doing is moving incrementally down the risk-reward curve.
I really like developed world (ex-US) as an option right now for the sake of diversification. We'll see how that goes though.
I have no opinion on gold. The primary point with investing is to hold assets that grow over time. Stocks and bonds, by definition, have to have positive returns over time as they produce streams of cash flows. I can't think of any reason that gold is guaranteed to go up.
There are entire books on the subject. Check out Common Sense on Mutual Funds, 2nd ed, by John Bogle. It's nearly 700 pages of charts and graphs proving the point that low cost, broad market index funds beat any individual investor over a period of time. Even professional fund managers can't beat the indexes consistently; much less the random redditor.
For an easier read check out Boglehead's Guide to Investing. They cover the real data, and then tell you what to do with it.
Or, you can just take it from someone like me who has read both front to back and buy VOO or VTI (SCHD not being too bad either) and sit back, relax, and live life, knowing that you're making a good return and generally outperforming anyone else.
OK, that sinks it. For 15 years I've resisted reading the book, but you've convinced me. I'll pick up a copy from Amazon and have a read. Thank you for convincing me!
Yeah -- dynamic replication is pretty much how everyone introduces the BS PDE. I've seen someone compile a list of .. I dunno .. 13? 11? 15? ways to derive BS, but this is the way most introductory texts approach the topic.
Hey. I'll trade you recommendations. I work in the RMBS / CMBS / ABS space. One of my favorite books is this one:
https://www.amazon.com/Liars-Poker-Norton-Paperback-Michael/dp/039333869X
I did my PhD in theoretical physics, so I'm pretty well acquainted with physics books. This book is the quant's analogy with Surely, You're Joking, Mister Feynman. Tremendously funny, and he slips in a HECK of a lot of very cool history from his point of view, and he was right in the middle of it. So much insight, and so funny. I don't usually read non-tech books, but this one is a gem!
William Bernstein’s “The Intelligent Asset Allocator”. It’s a classic.
The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk https://www.amazon.com/dp/1260026647/ref=cm_sw_r_cp_api_glt_i_RZJ0AED3GB7QK2F0HW6M
Not the same book and totally unrelated, but for shits and giggles: https://www.amazon.com/dp/0887305105/ref=cm_sw_r_apan_glt_i_E26CCR3R1KDSYQTWFVX2
The reason the price is insane is because it's an out-of-print collector's item. The cheaper options are knock-offs, but there are free PDFs as well.
>taxes here, I have to imagine, are higher than America
Don't imagine it, look it up and make sure. I also worked as a teacher in China and I think you are right, but make sure.
Are you actually paying tax? I am also an international teacher and many of the schools I have worked for have given me a salary tax free (they pay, I don't) so just to be sure if you are in that situation you wouldn't be able to claim the FTC. Of course though, at 50k a year you fit comfortably under the feie limit.
Tax services should not be costing you 1200$. I have a very good accountant that I pay something like 500$ a year for and he juggles a lot of balls when doing my taxes. Yours should be more straightforward. 1200 is too much.
An IRA is nice to use since it has tax advantages, but you don't need that to save for retirement. The simplest way is to just open an account at Vanguard and to then open a Target Date fund on their platform. You can also open an IRA with them in the future, all in one place.
Since you are an international teacher and asking these questions I think you would benefit greatly from reading Andrew Hallam's Millionaire Teacher. It is all about investing for retirement as an international teacher. Seriously, buy it and read it.
Dá uma lida no A Random Walk Down Wall Street
It is an oldie but a goodie. Read The Intelligent Asset Allocator:
https://www.amazon.com.au/Intelligent-Asset-Allocator-William-Bernstein/dp/1260026647
It explains why what VDHG does is the better strategy.
I'm in banking - fixed income. I know they give new analysts this book. Haven't read it myself.
The Handbook of Fixed Income Securities, Eighth Edition https://www.amazon.com/dp/0071768467/ref=cm_sw_r_apan_glt_fabc_J9E48BR6BQ3M8NGRENEA
Below are the two books that informed my investing and helped me go from $50 (my first investment) to 7 figures over the course of 25 years.
Why Stocks Go Up and Down - It might be a little dated but it delves into the core fundamentals of a companies finances and will help you do real analysis, not this shit that Reddit pushed as "DD".
8 Steps to Seven Figures - It's a little DRIP heavy but it goes into the value of consistent DCA investing.
And I'm sure I've owned every "X for Dummies" book on investing but the two above formed my core knowledge.
https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/1260026647
This is the book. You want to go YOLO. Fine. But he lays out a clear case that 1-3% of your portfolio should be in a non-correlating asset tp 'decrease' risk. With Bitcoin , given the transaction fees, re-balance (HODL) if you will far less than every year. Maybe a decade. But don't panic sell. Trust the rest of your plan to take you thought that. If it goes to the moon and is 25-50% of your portfolio at the end. Sweet.
Se sei interessato all'asset allocation, aggiungi ai classici The intelligent asset allocator di W. Bernstein in cui vedrai che ciò che conta è per l'80% la scelta delle asset class (azioni/obbligazioni) e solo per il 20% la scelta delle sub-asset class (azioni mondo, US, EU, EM). Non ti crucciare troppo sul tipo di ETF azionari che scegli come pure sull'obbligazionario. L'unica decisione che conta è lo split tra azionario e obbligazionario.
Ti puoi anche evitare il libro con l'ottima puntata podcast di Bernstein con Ben Felix in cui Bernstein dice che all'abbassarsi dei tassi, andrebbe diminuita la % di obbligazionario per il lungo periodo e che avrebbe anche senso in questa fase storica sostituire obbligazionario con azionario value/low volatility. Oltre azionario e obbligazionario, parla anche dell'asset class oro e l'effetto nel portafoglio.
IShares e Vanguard hanno già talmente tanti ETF che non vedo l'utilità di cercarne altri.
I just tell them, don't listen to me read this book and see if make sense. Saves a lot of hassles and if someone serious about it they will read it. Else how else the bank will make a profit :D?
The Bond Book, Third Edition: Everything Investors Need to Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More https://www.amazon.com/dp/007166470X/ref=cm_sw_r_cp_api_i_18aOFb84YWMBE
Read “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor” by Seth Klarman. It’s only $1,000 on Amazon. https://www.amazon.com/Margin-Safety-Risk-Averse-Strategies-Thoughtful/dp/0887305105
I won't buy individual bonds (aside from Treasuries) at this point. It'll take way too much money to build a diversified portfolio of them. And as we see from running through the numbers, there's just not much opportunity in that space. Leave it to the pros to pick bonds. If a bond gets issued today with an 8% coupon, best to just run away from it.
Right now, I'm primarily in Treasuries in the forms of VGLT and VCLT. Corporate exposure through VCLT and VCIT. Real exposure with VTIP. I shrinking pile of of SHV too, but I hold that as an alternate to cash.
And i own a growing pile of DHY (High Yield), but I don't even consider it "bonds" in my mind - just a alternate type of equity exposure, as that's what high yield is most correlated to.
Oh, and /u/juanlee337 - if you want to learn more about bonds before sinking $100,000 into them, I'd suggest getting The Bond Book from Amazon. It's $22.56, far cheaper to learn the basics that way.
Read Millionaire Teacher, which is an amazing book (by a guy who used to live in Victoria as well) which pretty much parrots everything everyone is saying here, but in more detail. It also has some good general financial advice for day-to-day things.
Some things that haven't been said in this thread already.
- Make use of tax-efficient vehicles like a TFSA. Presumably you don't work (fulltime) so ignore RRSP for now. Use this for buying ETFs (Vanguard is a good option)
- Pay off all debts which accrue interest since you won't be earning interest to match that
- Live within your means.
- Looks for HISA banks like EQ bank to park cash you don't need