While I am against the concept for myself, I do think one may provide peace of mind for my wife in the rare occurrence that I pass away, someone would be there to help her manage her and our money.
We just got off the phone with a Vanguard manager and most of what he said made sense except his desire to put at least 20% of the bond portfolio into international bonds. He used the broad US bond portfolio's YTD return of negative 1% as an example.
This all seems silly to me. Why would I want to invest in Japanese or German bonds. Their fed yields are 0.35% and 0.09% respectively. The international bond portfolio that he recommended has an SEC yield of 1%. This sounds like Buffett or Munger's "Diworsification", at least in the short term.
Am I incorrect?
We just got off the phone with a Vanguard manager and most of what he said made sense except his desire to put at least 20% of the bond portfolio into international bonds. He used the broad US bond portfolio's YTD return of negative 1% as an example.
This all seems silly to me. Why would I want to invest in Japanese or German bonds. Their fed yields are 0.35% and 0.09% respectively. The international bond portfolio that he recommended has an SEC yield of 1%. This sounds like Buffett or Munger's "Diworsification", at least in the short term.
Am I incorrect?