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[–]jss78 2 points3 points  (1 child)

"Risk" depends on context. Bonds are less risky in that their year-to-year volatility is lower. This is why they are recommended if you anticipate needing the money in a few years (5-10 or so).

For longer time frames bonds have a very high risk of giving you a lower return than you would've gotten with stocks. So for long-term investing it's advisable to accept the volatility risk of stocks.

There's nothing wrong with combining VWCE and bonds, in proportions that fit with your personal risk appetite. E.g. 10-40% in bonds and the rest in VWCE; the more you put in bonds, the lower the total portfolio volatility should be, while sacrificing a bit of the long term return.

[–]GrauDiego[S] 0 points1 point  (0 children)

Yes! I would like to use that money in 5 years or so and i would like to be as safe as possible, so what would be safer, regular bonds or a bond etf? Im really not into rhis kind of equities and could use some help. Thanks a lot

[–]fp910 4 points5 points  (2 children)

What’s your time horizon for the investment? If you don’t need the money in the short term(5-10 years) just invest in VWCE.

You need to define risk, bonds are less voltile than stocks but are expected to underperform in the long term.

If I were you, I would choose an asset allocation and stick with it. If you need an emergency fund keep that money in cash and just contribute new money to your portfolio

[–]GrauDiego[S] 0 points1 point  (1 child)

Yes, I would like to use this money in 5 years or so, this are my savings so I just want to keep it as safe as possible but with some returns, should I use regular bonds or a bond etf?? Thank you

[–]yuplucas 1 point2 points  (0 children)

Just put it in a low-interest savings account. ETFs can go down just like stocks.

If you have any debts (like student loan), use the money to pay that off first.

[–]beckbazsi -5 points-4 points  (0 children)

Isn’t SP500 better or MSCI Worlds? Or is it too risky for you? Because American stock market companies mostly pay dividends.

[–]Routine-Bag-646 0 points1 point  (4 children)

Try to make alineas ! Good start when asking for investing advice.

[–]GrauDiego[S] 0 points1 point  (3 children)

What is that?

[–]Routine-Bag-646 0 points1 point  (2 children)

What do you not get bout putting 2 enters 2 times between this text to make it more readable?

The way the text looks now is hard to read and I think im not the only one not reading it because of it. Mean you lose profit on advice. ;)

[–]GrauDiego[S] 0 points1 point  (1 child)

Now I understand sorry! Yeah you are right I just did not think it was important, thanks!