Earning Interest Everyday
“Compound interest is the eighth wonder of the world” ~ Albert Einstein One of the major benefits of owning bonds is the earning of interest every day. As you have a regular coupon (payout) schedule you know exactly how much your bonds have accrued in income. It also means every day you’re a bondholder you […]
Bonds at a discount or premium
Pop quiz, which of these bonds would you rather invest? Bond A: 3-year bond with a 3.00% coupon at price $94.50 Bond B: 3-year bond with a 10.00% coupon at price $113.77 I had an interesting conversation with a client who only wanted to purchase bonds under par ($100) and I wanted to demonstrate that […]
Top 8 Biggest Mistakes Stock Investors Make
What are the mistakes stock investors make? How can you avoid making the same ones? No matter how good your instincts are when it comes to playing the markets, investment pitfalls can happen to anyone at any time. Part of why these traps are so common is because people either don’t realise they’re falling prey […]
5 Investments You Can Make for Your Children
The idea of a family legacy today is every bit as important as it was 200 years ago. Doing your part to ensure the future comfort of your children is essential in today’s uncertain times. In fact, in today’s changing world, it may be one of the smartest decisions you ever make to safeguard your […]
The inner workings of a bond
Its quite endemic that bonds aren’t more well-known in Australia. A lot of that is intentional from the wholesale market. Trying to confuse the retail investors with lots of numbers, formulas and jargon.This article will go through some of the terminology of bonds and clear things up a bit. Face Value / Amount The notional […]
What you need to know about Corporate Bonds
This article is designed to give you the information you need to make an informed decision about whether or not Corporate Bonds are right for you. Everyone is looking for a safe way to get a reasonable return on their investment, but finding the right one that fits your needs can be challenging and entails […]
6 Questions you forgot to ask your Financial Planner
Regardless of how experienced your financial planner is, they don’t have time to impart all of their financial wisdom to you. Instead, they rely on your questions to guide them about what your priorities are. Some people just want to hand over their cash and consider the matter closed. But to really get an idea […]
What is the difference between a Term Deposit and a Bond?
Term deposits and bonds fall under the category of fixed income. They are relatively risk-free investments that you can use to strengthen your portfolio, like all investment options, they both come with their fair share of pros and cons.
Five of the worst investments for your SMSF
One of the most important factors to consider in making investments on behalf of an SMSF is that the SMSF is intended to provide the beneficiaries with income and capital benefits during their remaining lifetimes. It is therefore critical to ensure that in making investments on behalf of the fund no diminution of capital takes […]
ETF and other exchange traded bonds
An ETF is an investment into a fund that trades some asset. This is often a combination of shares of stock, futures, foreign currency etc. These ETFs are usually built to track an asset or index such as the ASX200 Australian share index. They allow you to invest in an asset (the ETF) that will […]