Show 87 - Should I use bonds in my portfolio? with Dara Albright
In this episode, I talk with Dara Albright about the place for bonds in a teacher's portfolio.
5/28/20251 min read
I’ve spoken pretty extensively about how much I dislike bonds as an investment option, especially for teachers with a pension since they will both serve essentially the same purpose. But in today’s episode, I try to highlight bonds and their purpose with Dara Albright, who knows quite a bit about bonds, as you’ll see! But the bonds we discuss might surprise you, and the returns definitely will! Check it out!
Show Notes
Dara Albright on LinkedIn if you have questions
Invest in Bonds with Worthy (affiliate link)
Recommended Books (Amazon Affiliate Links)
TLDR Pension Systems books (use this in conjunction with understanding bonds)
Key Ideas
Bonds pay interest while stocks are all about appreciation.
Public bonds have averaged less than 2% yield for the last 10 years while private bonds have averaged over 8%.
Don’t put all of your investments into one basket. Bonds are a way to diversify away from stocks (especially if you get a high return).
Worthy Bonds, which are high yield and liquid, could be a great place for an emergency fund.
Whether bonds are right for you is up to you. Continue to educate yourself!
Bonus Tip
Here is a bonus tip I didn't get to in the episode.
My current plan for bonds is to keep about a month in my emergency fund high yield savings and then start investing in Worthy Bonds to get a liquid higher yield beyond that for my emergency fund. Once my emergency fund grows large enough (say a 6 month emergency reserve), I’ll have the cash to maintain a 3 month reserve and begin looking for investment opportunities with the rest of the cash I have while it is still growing at 7% annually! Having money ready allows you to take opportunities that arise.