I've always been 100% invested in stocks, but having hit ichi-oku recently, and with all this talk of bubbles I'm seriously thinking about adding 10-30% in bonds.
Can you recommend a good one?
Should I go with domestic only or add developed or both?
I'd I add developed should I get a hedged one?
There is a chance I will move back to the UK in future – UK – would gilts be a good option?
Thanks for your suggestions!
by tokyotower101
7 comments
There are no good bonds. I will never buy a bond or a bond fund. You can read an opinion in detail @ https://www.reddit.com/r/JapanFinance/comments/1o177y6/lifecycle_investing_paper_beyond_the_status_quo/.
Aside from bonds being poor diverisifiers for equity portfolios, you’re also making an unforced error by market timing.
you can buy sgov – usa treasuries 0-3month duration.
otherwise em bonds with very high yields (but these have equity characters)
Your 年金 is a bond fund that you are forced into. Some people prefer not to rely on pension systems because of various personal thoughts. Personally, I tally it up as a fixed income security in my accounting with the help expectation that I’ll get this from my retirement age until I die.
I’m in BND and BNDX, plus some series i bonds. I also hold some short term bonds.
Bonds are most useful if you have a lot of money. If you don’t then don’t expect bonds to bring you much. Maybe when you reach 5 oku would make some sense to diversify.
Bond portion is 25% of my portfolio and spread across different duration US treasuries, Corporate Bonds, Junk Bond, and Emerging Markets Bond.
As you are able to buy non-US domiciled funds and ETFs, adding a world bond index fund will be good idea.
https://www.jpx.co.jp/english/equities/products/etfs/issues/01-09.html
Older/mid-70s here, and while I normally don’t touch bonds I recently bought some SCHO (1-3yr US gov) simply for better yield than the cash acct. It’s about 5% of overall, functioning as a cash-like allocation rather than bonds-as-diversification.
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