Category: Credit Investing
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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US Credit Downgrade from Moody’s
On May 16, 2025, Moody’s Investors Service downgraded the United States’ long-term credit rating from Aaa to Aa1, marking the final departure of the U.S. from the top-tier rating among the three major credit agencies. This credit downgrade aligns Moody’s with earlier downgrades by S&P in 2011 and Fitch in 2023, reflecting growing concerns over…
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The Rise of the 50/30/20 Portfolio Allocation
In the world of personal finance and investment strategy, portfolio allocation remains a cornerstone of wealth building. For decades, conventional wisdom has prescribed variations of the 60/40 portfolio—60% equities, 40% bonds—as the go-to mix for balanced, long-term investing. In recent years, that allocation has started to show its age, especially in the face of prolonged…
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How to Stay the Course During Market Volatility
Market volatility can trigger strong emotional responses that lead many investors to make costly mistakes. When markets plummet, it’s natural to feel anxious and consider selling investments to prevent further losses. Staying the course during market turbulence is often the most prudent approach for long-term investors, as historically, markets have always recovered and reached new…
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How Would a Boglehead Invest in Private Credit?
Investing in private credit presents an interesting question for followers of the Jack Bogle investment philosophy. While a Boglehead traditionally focuses on low-cost index funds and publicly traded securities, private credit exists outside this familiar territory. This asset class, which includes direct lending and other non-bank financing, has gained attention for potentially higher yields in…
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Reducing Your Portfolio Beta with Private Credit
In today’s incredibly volatile markets, finding ways to reduce your portfolio’s overall risk without sacrificing returns remains a top priority for investors. Private credit has emerged as a compelling option to achieve this balance, offering potentially attractive yields with lower correlation to public markets. Adding a strategic allocation to private credit can meaningfully reduce your…
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Boglehead 3-Fund Portfolio vs 4-Fund Portfolio
Investors seeking straightforward, low-cost investment strategies often encounter the Boglehead approach, inspired by Vanguard founder Jack Bogle’s principles of simplicity and diversification. The classic Three-Fund Portfolio consists of domestic stocks, international stocks, and U.S. bonds—creating a globally diversified investment mix with minimal complexity. Adding a fourth fund, typically international bonds or TIPS, can potentially enhance…
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Building a Dividend Portfolio with Private Credit
Many dividend investors build their portfolio for continued income growth to achieve their financial goals long term. By incorporating private credit, you can potentially enhance this strategy through diversification of asset classes and return structure. Private credit can offer higher yields and diversified returns, benefiting dividend investors seeking a stable income stream long term. When…
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What are US Series EE Bonds?
Series EE Bonds are a non-marketable, interest-bearing savings bonds issued by the U.S. government. When you purchase this type of bond, you’re essentially lending money to the federal government, which promises to pay you back with interest. These bonds are guaranteed to at least double in value when held to their full term, making them…
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6 Defensive Assets for Your Portfolio in 2025
As economic uncertainties increase, preparing your portfolio for potential market downturns becomes essential. Recent market volatility has already wiped out $4 trillion in stock market value, highlighting the importance of adding defensive assets to your portfolio in 2025. Knowing which assets can provide stability during economic turbulence can help protect your wealth and potentially offer…
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How to Understand Credit Spreads in Bonds?
In the complex world of financial markets, credit spreads serve as crucial indicators of risk perception and economic health. When you examine credit spreads, you’re looking at the difference in yield between two debt securities with similar maturity dates but different credit ratings. Credit spreads represent the additional yield investors demand as compensation for taking…