 So welcome everybody into the bond portfolio. There's an awful lot to unwrap here and a lot of different schools of thought At at play here when you're looking at bond investing This is something that I've done previously with M1 finance It's a cool way of taking a relatively smaller amount of money and putting it to work in fixed income a Lot of schools of thought out there on this topic and and I'm one of them that believes that you know bond investing and fixed income can actually be a detriment in your portfolio if it's not held in scale and You're not doing it with a very very Specific goal in mind in what you're trying to get out of it now as a self-directed investor I do put a lot of value in idle cash I believe that invested dollars that are invested in the market and making a higher than average rate of return because they are liberated and you don't Subject your money to to any type of tax implication or Fees over your money that you're going to accelerate your wealth over time by allowing those dollars to grow unabated into the future What do we do with the remaining cash if you invest or you hold savings accounts or multiple savings accounts The banks are taking your money and they're investing it in the stock market or whatever vehicle to garner a higher than average Interest rate on that money and then they're paying you pennies on the dollar for basically just keeping your money with that Institution a lot of people have a misconception about savings account They think that they've got a big pile of money sitting there at the bank and that's just not true It is it is the banks Obligation to you to to honor that amount up to the FDIC insured amount of 250,000 per account but outside of that you don't have your money at the bank now if you went in and you had a sizable amount and you had Asked for a deposit you'd be hard-pressed to get your money on demand. I mean you'd have to schedule that and and it speaks to my understanding of the banking institution in that they are putting that money to work and so to honor those obligations of people who go in and they need cash Very few I might add because a lot of people just buy into the piggy bank mentality and just keep their money for years In the banking institution the vanguard bond ETF portfolio that I've constructed here allows me to Put some of those dollars to work and garner a higher than average Interest rate. This is built right at about a 3% clip So this rate of return is about actually the dividend yield is about 3% I would expect to get a couple points of appreciation out of the portfolio. That's it I'm not expecting magic out of this the idea here that is if I can maintain the current pace of inflation Then basically I'm I'm keeping my dollars growing at the same rate as inflation is growing and therefore a certain small percentage of my What would be idle cash on the side is now keeping up with inflation and you might think well, what's the point to that Ryan? I Think it just speaks to my insistence that having multiple diversified buckets across your portfolio are is Super important and there are going to be times of outperformance in fixed income In in in time and historically the mixed portfolio has has shown us nothing But it's ironclad ability to weather storms go through Recessionary periods in the stock market and the importance of being partially levered to bonds if not To adjust to bonds over over time is super important So we scroll down here. I just want to show you guys where I've got these dollars allocated Here in the slices These are Spread out across a intermediate short-term long-term and extended duration Start at the bottom first. This is the extended duration. This is the smallest aspect of the portfolio It is the only stand-alone extended duration ETF that I have here And I've got this throttled at about a 10% clip in the portfolio. So it works well Right above that. We've got both long-term Treasuries and then long-term corporate Bond ETFs. So both on the long side. So about 21 percent between these two on the long side Expiry on those and then for the and I've got long there's long-term corporate there So kind of cool, you know got those three there on the long side So 20 to 33 percent there on the long side and then the short side got about 27% on the short side so short-term bond and short-term corporate here nice little mix You'll see the dollar amounts really aren't that robust this can apply to the masses out there Which is what I always try to cross-check my message with is that can somebody take my message and and deploy and find a strategic niche For you and and for a lot of investors They may say yes or no about for those investors that say yes It's kind of interesting to see how I seek this and then on the top end here with the intermediate term and corporate exposure here at 15 Eclipse a 30% Devoted here on the intermediate term bond. So very very simple with a Description here. I will share this in the description of this video as well as in the comments section below Please understand if you do click on any of the links on anything in my channel The channel can receive a small compensation for recommending This unique way of investing within M1 finance remember the whole idea is to take a smaller amount of money Choose the assets that you want and let M1 do the rest they will take and spread those dollars out across those assets and And and allow you to be the investor that you want to be so if you are looking for an alternative to a savings account this may May suit your needs it does for me and it's a very relatively small amount of the total overall Portfolio, I think this is about oh a quarter of the total value a quarter of 1% actually So a very small amount But I thought I'd roll that out to you guys and and the strategic clip on this is 50,000 to 100,000 I think to have 10% at 100,000 on a million dollar portfolio is great No time like the present to start it and here it is This is the first rollout of this and we'll chronicle it throughout the history of the channel and and we'll Check progress and see how it fares in good and bad markets and Be a lot of fun to roll that out for you guys as I really appreciate you tuning in We'll kick you back and we'll conclude the video