The High Risk of Bonds

The conventional wisdom is that bonds and fixed income are safe investments and you need them to stabilize your portfolio. The truth is bonds are a high risk to your retirement.

Understanding the high risk of bonds can be one of the easiest ways to get higher investment returns and achieve your life goals.

While bonds are less risky short-term and medium-term, they are actually quite risky as a long-term investment – more risky than stocks. They are less predictable than stocks for periods of 20 years or more after inflation.

You will need to adjust your investment binoculars to a long-term focus to see this high risk of bonds.

Listen to my latest podcast episode for a history of bonds vs the stock market.

To fully understand this framework, please visit my blog post with much more detail on the topic here: https://edrempel.com/high-risk-of-bonds/