Many SMSF investors are confident with shares, property and term deposits but when it comes to bonds they are feel like they hit a brick wall when they look for solid reasons to consider this sector. 

I found this series of articles from Elizabeth Moran that looks at some of the myths around bonds and addresses them in detail.  The series addresses the key concerns that SMSF investors mention to me when suggest a potential investment in a bond issue or bond fund. Most of the concerns are based on misinformation on the web and false rules of thumb.  So, if you would like to learn more about bonds, this series of articles which looks at the “Seven Key Myths” is a good starting point.

Myth #1 My portfolio consists of shares and cash and I don’t need a bond exposure

Myth #2 It’s a bad idea to invest in bonds when interest rates or inflation are rising

Myth #3 Bonds are too risky

Myth #4. Fixed Income returns are low and will be a drag on my portfolio’s performance

Myth #5. You need a lot of money to buy bonds directly so go for a managed fund instead

Myth #6. There is too long to wait until maturity

Myth #7 I own hybrids so I already have an allocation to fixed income

Subscribe to keep updated

Subscribe to the SMSF Coach blog on the left hand column so that you don’t miss out educational articles like this.

As a thank you to FIIG I will also add a link to their SMSF Solutions page (Not a paid endorsement just a recognition of a good effort)

Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.

Liam Shorte B.Bus SSA™ AFP

Financial Planner & SMSF Specialist Advisor™

Tel: 02　98941844, Mobile: 0413 936 299

PO Box 6002 BHBC, Baulkham Hills NSW 2153

5/15 Terminus St. Castle Hill NSW 2154

Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.

Join Us Image courtesy of Stuart Miles at FreeDigitalPhotos.net