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4 December 2024

Home / White Papers 2016

Looking for income?

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:

Economic 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.

Individual concerns:
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.
6. Liquidity.

 

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