Thoughts on BONDS and REITS?

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nkotbbh
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Thoughts on BONDS and REITS?

Post by nkotbbh » Wed Oct 18, 2017 6:32 pm

Just wanted to get people's thoughts on Bonds and Reits preferably Vanguards etf Bonds "bnd" and Reits "vnq" what would you do buy, or hold. Looking to buy reits as i just bought a few bonds on Monday 10/16/17.

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Sandtrap
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Re: Thoughts on BONDS and REITS?

Post by Sandtrap » Wed Oct 18, 2017 6:53 pm

For myself.
Total Bond
No REIT. I'd rather own the real thing. R/E. :D

nkotbbh
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Re: Thoughts on BONDS and REITS?

Post by nkotbbh » Wed Oct 18, 2017 7:03 pm

Sandtrap wrote:
Wed Oct 18, 2017 6:53 pm
For myself.
Total Bond
No REIT. I'd rather own the real thing. R/E. :D
True but for many like myself we may not have the 20% down payment not mention the years you are in debt until you fully pay off the house not saying it is a bad thing because I would love to buy my very own house one day.

Johm221122
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Re: Thoughts on BONDS and REITS?

Post by Johm221122 » Wed Oct 18, 2017 7:05 pm

Bonds are needed,create an asset allocation that meets your" need,ability and willingness to take risk"
REIT's are optional

I hold stable value best choice in 401

IPS
https://www.bogleheads.org/wiki/Investm ... _statement

REIT

https://www.bogleheads.org/wiki/Real_es ... ment_trust

Why bonds??

viewtopic.php?t=134041

ResearchMed
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Re: Thoughts on BONDS and REITS?

Post by ResearchMed » Wed Oct 18, 2017 7:40 pm

nkotbbh wrote:
Wed Oct 18, 2017 6:32 pm
Just wanted to get people's thoughts on Bonds and Reits preferably Vanguards etf Bonds "bnd" and Reits "vnq" what would you do buy, or hold. Looking to buy reits as i just bought a few bonds on Monday 10/16/17.
Your recently posted elsewhere that you didn't have enough money, such as $3k for Investor shares, for two new Vanguard funds:
nkotbbh wrote:
Wed Oct 18, 2017 12:33 pm
Toons wrote:
Wed Oct 18, 2017 12:26 pm
2 options
Initial Purchase
150 Investor Shares =3,000
2000 Admiral Shares=50,000
:happy
exactly and can not do that too much money down which I currently do not have.
I'd suggest that you focus on getting the core investments in place before you start adding some of the "extra" asset classes such as REITs.

You would probably also do well to spend some time reading up on some of the basic material recommended here on Bogleheads, before branching out in several investment directions.
Then, by the time you have more substantial amounts to invest, you'll have settled on some general plans for your long-term investments.

RM
This signature is a placebo. You are in the control group.

nkotbbh
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Re: Thoughts on BONDS and REITS?

Post by nkotbbh » Wed Oct 18, 2017 8:03 pm

ResearchMed wrote:
Wed Oct 18, 2017 7:40 pm
nkotbbh wrote:
Wed Oct 18, 2017 6:32 pm
Just wanted to get people's thoughts on Bonds and Reits preferably Vanguards etf Bonds "bnd" and Reits "vnq" what would you do buy, or hold. Looking to buy reits as i just bought a few bonds on Monday 10/16/17.
Your recently posted elsewhere that you didn't have enough money, such as $3k for Investor shares, for two new Vanguard funds:
nkotbbh wrote:
Wed Oct 18, 2017 12:33 pm
Toons wrote:
Wed Oct 18, 2017 12:26 pm
2 options
Initial Purchase
150 Investor Shares =3,000
2000 Admiral Shares=50,000
:happy
exactly and can not do that too much money down which I currently do not have.
I'd suggest that you focus on getting the core investments in place before you start adding some of the "extra" asset classes such as REITs.

You would probably also do well to spend some time reading up on some of the basic material recommended here on Bogleheads, before branching out in several investment directions.
Then, by the time you have more substantial amounts to invest, you'll have settled on some general plans for your long-term investments.

RM
RM, thanks for the reply actually yeah the earlier post seemed like a good portfolio basic 2 fund because it is 2/3 stock market and 1/3 bonds so seemed good just saying but I went ahead with a basic 3 fund portfolio and like you said if anything ill add on from there as time progresses.

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abuss368
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Re: Thoughts on BONDS and REITS?

Post by abuss368 » Wed Oct 18, 2017 11:40 pm

Important to an investment portfolio. Don’t forget International REITs.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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Portfolio7
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Re: Thoughts on BONDS and REITS?

Post by Portfolio7 » Wed Oct 18, 2017 11:44 pm

Bonds or similar Fixed Income (Stable Value, CD, Money Market) are critical tools to control your volatility risk.

REITs come with a TSM index fund already, so you don't need to mess with them as a separate asset class, like VNQ or VNQI.

I invest in both domestic and international REITs and I think they improve my portfolio slightly, but if I couldn't invest in them as a separate class I wouldn't lose any sleep over it. The benefit appears to be marginal at best.
An investment in knowledge pays the best interest.

dbr
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Re: Thoughts on BONDS and REITS?

Post by dbr » Thu Oct 19, 2017 8:10 am

My thoughts are that bonds and stocks are assets that you own in combination to get the risk and return trade-off you want in your portfolio.

I have no interest in REITS, factor investing, or other approaches to diversification beyond holding total market portfolios, more or less. I think a person should invest in those directions when they feel they understand why well enough to convince someone else to do it but not if they have to ask.

PS I am well aware the total market includes some REITS, small and value stocks, etc., etc., etc.

jb1
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Re: Thoughts on BONDS and REITS?

Post by jb1 » Thu Oct 19, 2017 8:46 am

Id personally rather own RE than a REIT

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nedsaid
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Re: Thoughts on BONDS and REITS?

Post by nedsaid » Thu Oct 19, 2017 8:53 am

nkotbbh wrote:
Wed Oct 18, 2017 6:32 pm
Just wanted to get people's thoughts on Bonds and Reits preferably Vanguards etf Bonds "bnd" and Reits "vnq" what would you do buy, or hold. Looking to buy reits as i just bought a few bonds on Monday 10/16/17.
Remember that REITs are really not a bond substitute. REITs are stocks and sometimes are more volatile than the stock market itself. I recall a day when REITs fluctuated by 10%! Let me repeat that, a 10% swing in a day! Another thing to consider is that yield has been chased pretty hard for almost eight years now so REITs are no bargain. I trimmed my REITs back about 20% and do not plan to buy more though I will keep the remainder.
A fool and his money are good for business.

nkotbbh
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Re: Thoughts on BONDS and REITS?

Post by nkotbbh » Thu Oct 19, 2017 4:14 pm

nedsaid wrote:
Thu Oct 19, 2017 8:53 am
nkotbbh wrote:
Wed Oct 18, 2017 6:32 pm
Just wanted to get people's thoughts on Bonds and Reits preferably Vanguards etf Bonds "bnd" and Reits "vnq" what would you do buy, or hold. Looking to buy reits as i just bought a few bonds on Monday 10/16/17.
Remember that REITs are really not a bond substitute. REITs are stocks and sometimes are more volatile than the stock market itself. I recall a day when REITs fluctuated by 10%! Let me repeat that, a 10% swing in a day! Another thing to consider is that yield has been chased pretty hard for almost eight years now so REITs are no bargain. I trimmed my REITs back about 20% and do not plan to buy more though I will keep the remainder.
Thanks I actually bought 3 funds of both BND and VNQ I am going to stop with VNQ and continue on buying BND

nkotbbh
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Re: Thoughts on BONDS and REITS?

Post by nkotbbh » Thu Oct 19, 2017 4:15 pm

jb1 wrote:
Thu Oct 19, 2017 8:46 am
Id personally rather own RE than a REIT
same here one day I hope.

PFInterest
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Re: Thoughts on BONDS and REITS?

Post by PFInterest » Thu Oct 19, 2017 5:10 pm

i usually buy to hold, yes.

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