header photo

Basset & Gold Plc

Hassle Free Investing | Online Lending

Blog Component

Monthly Income Bond: A way to earn an Income after Retirement

June 17, 2016

Who doesn’t want to financially secure their retirement with a regular income? Monthly Income Bonds are the gateway for all those retirees looking for a source of income. They reassure people that there is still an option available to gain an income when there is no job to make ends meet. What type of bond it is and how does it work? If you have the answers to those questions, then you can definitely analyse the benefits of this type of bond.

They are an investment bond which helps investors by offering returns every month on the capital investment. In this type of bond product, investors invest in debt security and get dividends every month. However, there is always a little risk while investing in this type of bond. If you want to earn a good return without taking any big risks, then this bond can benefit you more than investing in stocks.

Some bond provider companies also pay the returns quarterly or annually. You can also reinvest your returns back into the product to earn more. If you are thinking to invest your hard-earned money in a lucrative type of bond, then this is the best option for you. However, thorough research is always mandatory when considering any investment products. Research the bond issuer company and the quality of the bond, and then decide whether to invest or not.

You should also check the creditworthiness of the bond provider company. If the government has associated a company with good ratings for repaying the debt, then you can choose that company to make your investment. There are some standards set by agencies that rate such companies for their creditworthiness. AAA rated bonds are considered as the highest-rated bonds while C or D rating indicates a higher risk is involved.

You should also have good knowledge of income bonds terminology. It can help you better understand your bond and the interest payments which will be paid to you monthly. You can also take financial advice from an independent financial adviser.


Monthly Income Bonds: A Lot of Facts to Know

May 23, 2016

This is the common problem with every investor in the UK when looking for a reliable and safe investment plan. Every person wants his assets to generate an income. It was decades ago when financial institutions paid investors twice a year while investing in bonds. This is the twenty first century, now people can build a portfolio, which can pay them monthly with a guaranteed return of capital amount. These are Monthly Income Bonds with 12 monthly payments for a year. However, the amount earned every month may vary with the earnings of the bond issuer company.

If you are willing to invest your savings in this type of bond, then you should first conduct  thorough research about the bond quality. If a company which is issuing the bond is found creditworthy in terms of repaying the debt, then you can buy the bond from that company. If a bond issuer company is associated with high ratings, then you can trust the company to make the investment.

A few agencies work in the financial industry to rate such companies. They use a combination of letters to represent the creditworthiness of a bond issuer company. Bonds rated with AAA are considered as the highest quality of bonds with minimal risk, while the bonds with C or D ratings have greater risk. So, invest your money carefully.

If you want to calculate the interest payment on the bond, which will be paid to you every month, then understanding the basic terminology of income bonds is necessary. You can estimate the interest amount yourself or consult a financial advisor to estimate how much you will receive. In addition to this, you have the freedom to withdraw an amount from the capital investment in an emergency. However, you will have to give a notice for the withdrawal.  

In this type of bond, your interest is calculated on a daily basis, but will pay you on a fixed date every month, ensuring investors with a guaranteed return of capital amount on the date of bond maturity. So, if you are looking for a good investment plan for your retirement, then you should consider this type of income bond.



National Savings Income Bonds: Earn Monthly at Minimal Risk

April 13, 2016

Who doesn’t want to spend their whole life with financial security? Everyone looks for a life which can lead them towards wealth and peace of mind, but there is no guarantee.  For this reason, the majority of people in the UK are very concerned about their savings. However, they are still hesitant to invest their savings in any random investment plans to earn a regular income.

If financial security is your prime concern, then you can invest your money in National Savings Income Bonds. If you can’t afford the risk of losing the capital money or the regular returns, then this is the right product to keep your savings secured. This doesn’t only minimize the risk, but also gives the opportunity to earn a regular income. In this type of bond, the bond issuer will pay you the interest monthly, which is calculated daily.

Why National Savings Bonds are secured?
This is the government backed bond, which is considered as the safest investment product due to the guaranteed returns. However, this amount may vary with inflation, but will be transferred into the investors’ account on a fixed date of every month by the UK government. Overall your money is one hundred percent safe. You can also withdraw a portion or the complete capital amount anytime for financial emergencies, without any notice. The government will not charge you a penalty on the withdrawal.

Taxable or Tax-free?
These types of bonds are categorized into two - taxable and non-taxable. Premium Bonds, ISAs, Children's Bonus Bonds, and savings certificates are free from tax. You don’t need to pay any tax on the interest or prizes, you earn on the investment in this type of bond product. On the other side, Guaranteed Income Bonds and Guaranteed Growth Bonds are the taxable bonds, which deduct the tax on the interest amount earned. You will need to decide which can benefit you best in terms of financial growth.

Alternative Solutions to keep your Money Safe:
If you are not satisfied with the variable interest rates of NS&I products, then you can go for the Fixed-rate Bonds for earning fixed interest every month on your capital investment. However, to take the benefit of this fixed rate, you will have to lock your money for at least one year in this bond.


Fixed Income Bonds to help both Investors and Issuers

March 30, 2016

If you are looking for a potentially reliable source of income for your retirement, then Fixed Income Bonds can be the best choice for your savings. This is a type of bond in which investors lend their money to borrower companies, also known as bond issuers. Those issuers pay a fixed interest rate on the investment (also known as the coupon) until the bond matures. On the date of maturity, the capital amount will be returned to the investors at face value.

Benefits of Investing in Income Bonds:

Protect your Capital Amount: This is the best solution for those nearing retirement. This portfolio of fixed income products can help you earn regularly at less risk. Unlike stocks, your capital amount is secure and will be returned you at the end of the bond period.

Medium to generate Income: This is the best way to earn an income in the future, to strengthen your financial situation and help fulfill your financial needs.

They are available in several types - you are free to select any, according to your personal circumstances. You should be aware that poor financial institutions pay the higher interest rate while strong issuers always pay a lower interest rate.  However, the bond market is diversified and it is always better to take advice from professionals before deciding on which type of investment best suits your circumstances.