AI-Generated Summary: The article argues against the traditional financial advice of including bonds in a portfolio, especially for long-term investors. The author, Benjamin Beck, contends that while bonds reduce volatility, they increase the overall risk of failing to meet long-term financial goals because their returns, averaging about half that of equities, cannot keep pace with inflation and preserve purchasing power. He distinguishes between volatility (price variability) and risk (probability of reaching goals), claiming that equities are less risky over the long term, and suggests diversification should be within equities, not through fixed-income instruments like bonds. When people meet us for the first time, one of the things that they are most surprised to learn is that we don’t buy bonds. Not ever. I love it when they ask, “Why not?” It gives me a chance to explain how having bonds in your portfolio can cost you in a really big way.
