Quote:
Originally Posted by Caymus
So, he was selling individual junk bonds? He should have at least offered a high yield bond fund as an alternative.
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Yes, junk bonds with a high commission to the advisor who sells them. You can invest in the Vanguard High Yield Corporate bond fund with no commission and a low expense ratio of 0.13 percent. The current yield is 6.77 percent, and it is much less risky because the fund owns hundreds of bonds, instead of putting all of your money into one bond. Of course, he could have recommended a fund, but he wanted to get the high commission.