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 #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
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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
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