
"But I'd argue that perhaps an even more important goal should be at the forefront of investors' minds, and that's being able to sleep well at night. Having an investment portfolio that's unnecessarily complex or includes investments that are far too volatile for one's risk preferences can lead to significant anxiety. In this economic environment, with uncertainty picking up by the day, that sort of volatility could lead to massive selloffs during downturns."
"Most personal finance experts tout the wisdom that staying invested is the most important thing to generate long-term wealth. Missing out on just a few of the biggest days in the market (which often come after severe declines) can wipe out years or decades of growth. Thus, finding ways to stay invested is important. I've found a number of exchange traded funds (ETFs) I think do just that."
Growing wealth, saving for retirement, and achieving financial freedom are common investor goals, but maintaining the ability to sleep well at night should be paramount. Unnecessarily complex or overly volatile portfolios can create significant anxiety and prompt costly selloffs during uncertain economic periods. Staying invested is essential because missing a few of the market's biggest days can erase years of growth. Well-diversified, low-cost exchange traded funds help investors remain invested by reducing the need for frequent rebalancing and lowering volatility. The Vanguard Total Bond Market ETF (BND) seeks broad exposure to the U.S. investment-grade bond market, including Treasurys, agency MBS, and high-quality corporate bonds.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]