Is there a “safe” alternative to a bond? I have never owned bonds because I want higher returns, but I wasn’t aware that you take on the risk of a stock yet still get lower returns. Maybe pick some of the low-risk options on Stock Advisor? I’m mid-40s and he’s not yet 40, so we have a long timeframe.
Yes there are. The ones you know the company. How well? If someone refers to the CFO, CEO or CTO by name, you should be able to say, “Yeah he is the CFO of xyz, also on the board abc and helped start up efg and rst.
That takes time, (Don’t be throwing out names from Hubspot or even Arista, I am not there yet.) The idea is that the companies that are safe are companies you are intimately involved in.
My guess is you spend more time learning about coffee beans than the companies you will invest in. (I know I spend more time studying about boat plans for boats that I will never build.)
To convince your husband, do these two things.
First, down load the knowledge base, make it into a readable document, print it out and use a highlighter to read it.
Second, DON’T BUY ANY STOCKS! Fill out your Caps profile with all the stocks from Saul’s latest monthly profile. Just throw them down willy nilly.
Then, find analogs for your husbands investments, bond funds ect. Put them in his Caps profile. Wait a year.
If what happens happens as I expect, you husband will be interested in buying all of Sauls latest stocks.
DON’T DO IT!
Take the section of the knowledge base that shows how to evalate stocks and try to evaluate the companies that your husband holds bonds in, and the companies in Sauls most current portfolio. This is hard and tedious the first time so you might only get one of Saul’s companies and one of your husbands bond companies evaluated. (I know it is not apples to apples, but the health of the underlying companies matter. Often bond holders buy bonds in companies that they would never buy equities in. They do this because the bonds are asset backed, or they are senior debt. This is a false sense of security, yes the bond holder will not get completly wiped out, but they can see a huge hair cut based on the underlying companies and on MACRO economic conditions that no one has control over.
If you are losing money now. Go to cash until you have a plan to not lose money. If you are making money now, keep doing what you are doing until you understand the Saul method.
Even then, after a year of following Saul via Caps, move a little over each month. Look at one company, listen to the conference calls, go to the Edgar database, read the 10q and 10ks. Review the other documents there. Google the names of the priciples. Do they have integrity? How do YOU feel about them? (I trust my wife to gauge the people more than myself.) Then and only then, buy a few shares.
It has been my experience that money likes to fly away more than it likes to flock to me.