Quote:
Originally Posted by dave042
the stock market is where you make money. bonds don't offer you any protection from default. if too scared to pick individual stocks, go with an S&P or NASDAQ index fund. the fees on them are minimal. whatever you do, don't buy mutual funds. their fees are crazy high.
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There are books on everyone of the things you mention.
Bonds don't offer any protection from default. If, you think it is worth what you will pay for it by reduced yield, you can purchase insured bonds.
Stocks? The term default, is not the proper ones BUT, KODAK-comes to mind. ENRON-comes to mind. BP was destroyed. GE has???
RE: MUTUAL FUNDS
I assume you are comparing them with ETFs. Each time you buy shares in an ETF you pay a COMMISSION. Commissions have dropped in recent years-IT HAS NOT ALWAYS BEEN $5.00. EVEN THE MANAGEMENT FEES-some companies with 401Ks etc get lower management fees on the same funds that others buy and pay full fees-diff is about 1/3 less. Vanguard with probably amung the lowest fees in the industry offers ADMIRALTY shares. With a balance of ?????? 50,000 in the funds I know about, the fees for the same fund drop by 1/3.