Looking for income? Bonds are a true provider
This White Paper from FIIG Securities’ Director of Education and Research, Elizabeth Moran, explains how income securities such as bonds (fixed, floating and inflation linked bonds) can be used to mitigate risk, especially for SMSF trustees who are nearing retirement in a sluggish equity market environment.
This strategy aims to address the following concerns:
1. The state of the global economy, especially with Chinese GDP growth lower than expected.
2. The rises in US interest rates and the impact on Australia.
3. The implications of declining oil prices, including deflation and loan defaults.
4. Income – low interest rates mean low deposit rates and low returns – SMSFs need to eke out as much income as they can but still be able to sleep at night.
5. Capital preservation.
(Click on the cover page image for the full document).
Sponsor White Papers (click here for previous papers)
Wikipedia defines a White Paper as “an authoritative report or guide informing in a concise manner about a complex issue and presenting the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.”
Cuffelinks includes this section to allow our sponsors to share their longer research or opinion pieces with our audience without editing or comment by us. They are provided for general education purposes and do not address the specific needs or circumstances of any investor.