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Whatever you do, do not buy bonds right now. As they sell off and rates rise, the value of your bonds on the secondary market will get trashed. You'll also have

Whatever you do, do not buy bonds right now. As they sell off and rates rise, the value of your bonds on the secondary market will get trashed. You'll also have an opportunity to buy bonds with massive yields if the market crashes due to a debt crisis. I mean imagine getting paid 20% per year, tax advantaged, for the next 30 years. Honestly, the rule with indexes is buy and hold. Although I'm confident we have a crash incoming, unless you need the money soon, you should just hold your index funds and add everything you can to it at the bottom. You'll also have to pay taxes on the realized gains if you go to cash. I do believe that Trump's entire presidency is going to be a massive crash, temporary rebound, and then downtrend through 2028. We will probably not return to highs until the 2030s.

tombert 2y ago
I wasn't planning on buying long-term bonds regardless; historically I have bought short-term treasury bills, usually 4 to 8 weeks, depending on the coupon rate, so I'm not too worried about the value on the secondary market. I'm much more concerned with the fed defaulting on paying me back. I more or less came to the same conclusion that you listed; I don't really want to create a big taxable event, so I think right now I'm going to keep the stock I have, and in the shorter term keep future income in a savings account for awhile and suss out if there's going to be a crash or not. Obviously you can't really "time" the market but it's a pretty low-risk experiment on my end.