I previously wrote that bonds are more suitable for cash flow than stock dividends. This is because coupon payments from bonds are fixed while dividends from stocks are not. Bondholders are higher on the hierarchy of claims than shareholders and hence bonds are considered less risky than stocks.
Why are most investors clueless about bonds?
MoolahSense founder, Lawrence Yong, shared with us during the interview that retail investors do not have access to many bonds. Many of them were only sold to wealthy investors! He was speaking from his previous work experience as a fixed income banker.
Most of these bonds are paying decent yields and are snapped up by institutions and wealth banking clients. Currently, there are only 6 corporate bonds traded on SGX, and an another one adding to the list soon (Frasers Centrepoint Trust is issuing bonds of interest 3.65%).
We have encountered a handful of retirees in our talks and it is important for them de-cumulate rather than accumulate wealth. Most of them are asset rich and they should be converting their assets into cash to supplement their retirement income.
As such, we created the Multiple Streams of Income for Retirees workshop to help them do so. We prescribed a ladder of multiple income streams which they could explore:
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
We understand that many are still unclear about bonds. To help them, we are launching a new workshop together with MoolahSense on 26 May 15 to bring bond awareness to more people.
The workshop is titled – Generating Passive Income From Bonds. Here is what you will learn.
- The fundamentals of bond
- What are the types of bonds?
- The new Singapore Savings Bonds
- A bond holder vs a stock holder
- Why is a bond good for passive income?
- The 5Cs to bond investing
- The role of bonds in your investment portfolio
This is not a preview seminar. We don’t have a few thousands dollars course to sell you. Come and learn!
Please register for your seat now. Seats are very, very limited.