08-18-2014, 09:31 AM
I’ve never invested in mutual funds, bonds or etf’s. I’m curious if they have a place in your portfolio and how they fit into your dividend growth strategy? I’m just beginning to build my portfolio and I’m trying to figure out if I should be looking at these types of investments or just stick with stocks.
I feel like mutual funds will give me some diversity while I only have a handful of stocks. However, I don’t like the idea of paying someone else to manage my money.
From what I understand some ETF’s pay a distribution, but they still take some of my money via the expense ratio. Again, I feel like I can do better on my own, but I like the diversity. Or maybe I could invest in an ETF to gain exposure to riskier investments. For example, JNK invests in high yield bonds. That would give me exposure to the bond market, while limiting my risk through diversification I can’t achieve on my own.
I don’t really know anything about investing in bonds. Every time I start to look into them I feel like stocks are a better investment for my age (29) and goals (make as much as I comfortably can off my money). Do you invest in bonds and why?
I feel like mutual funds will give me some diversity while I only have a handful of stocks. However, I don’t like the idea of paying someone else to manage my money.
From what I understand some ETF’s pay a distribution, but they still take some of my money via the expense ratio. Again, I feel like I can do better on my own, but I like the diversity. Or maybe I could invest in an ETF to gain exposure to riskier investments. For example, JNK invests in high yield bonds. That would give me exposure to the bond market, while limiting my risk through diversification I can’t achieve on my own.
I don’t really know anything about investing in bonds. Every time I start to look into them I feel like stocks are a better investment for my age (29) and goals (make as much as I comfortably can off my money). Do you invest in bonds and why?