If you had 1 million dollars....

Hi CY09,

For me, the bonds that I am holding are for the income. In time if the economy crash, and the companies that I holding reduce their dividend payout, then the payout from the bonds will form a substantial part of my income.

(09-11-2013, 02:36 PM)INTL Wrote: Hi CY09,

For me, the bonds that I am holding are for the income. In time if the economy crash, and the companies that I holding reduce their dividend payout, then the payout from the bonds will form a substantial part of my income.

hi NTL,
I've brought Eastspring MIP M. Waiting for next payout before exiting in Dec.

For me my only bond fund is CPF's OA, SA. And so far you can leave it with CPF as long as you want after 55. My "reserve weapons".
My preference is always the company shares though the company's bonds seem safer. Because if company does very well bond holders don't get anything extra at all. If company does very badly and goes down the drain, bondholders may not get anything too. Of course if company doesn't make money but still can survive, bond holders may be paid. But this depends on the terms of the bond.

(09-11-2013, 03:04 PM)Cschua Wrote:

(09-11-2013, 02:36 PM)INTL Wrote: Hi CY09,

For me, the bonds that I am holding are for the income. In time if the economy crash, and the companies that I holding reduce their dividend payout, then the payout from the bonds will form a substantial part of my income.

hi NTL,
I've brought Eastspring MIP M. Waiting for next payout before exiting in Dec.

IC, and I thinking of entering it. Why do you thinking of exiting right after breakeven? Mind sharing?

(09-11-2013, 03:10 PM)Temperament Wrote: For me my only bond fund is CPF's OA, SA. And so far you can leave it with CPF as long as you want after 55. My "reserve weapons".
My preference is always the company shares though the company's bonds seem safer. Because if company does very well bond holders don't get anything extra at all. If company does very badly and goes down the drain, bondholders may not get anything too. Of course if company doesn't make money but still can survive, bond holders may be paid. But this depends on the terms of the bond.

For the bold part is why I hold some bonds.

Can't touch my CPF monies until 25yrs later.

(09-11-2013, 04:28 PM)NTL Wrote:

(09-11-2013, 03:10 PM)Temperament Wrote: For me my only bond fund is CPF's OA, SA. And so far you can leave it with CPF as long as you want after 55. My "reserve weapons".
My preference is always the company shares though the company's bonds seem safer. Because if company does very well bond holders don't get anything extra at all. If company does very badly and goes down the drain, bondholders may not get anything too. Of course if company doesn't make money but still can survive, bond holders may be paid. But this depends on the terms of the bond.

For the bold part is why I hold some bonds.

Can't touch my CPF monies until 25yrs later.

Is there a lack of companies that can do better than survive and yet issue relative bond yield ? Why lower the bar of safety.

for me, I just invest the max stock limit for OA. The rest I keep as OA balance to earn 2.5% p.a.
Keep it simple.

My OA was dried up from paying up my HDB. Am happy with 4% in SA, so do nothing with it.

(09-11-2013, 04:27 PM)NTL Wrote:

(09-11-2013, 03:04 PM)Cschua Wrote:

(09-11-2013, 02:36 PM)INTL Wrote: Hi CY09,

For me, the bonds that I am holding are for the income. In time if the economy crash, and the companies that I holding reduce their dividend payout, then the payout from the bonds will form a substantial part of my income.

hi NTL,
I've brought Eastspring MIP M. Waiting for next payout before exiting in Dec.

IC, and I thinking of entering it. Why do you thinking of exiting right after breakeven? Mind sharing?

The main reason is the bond price will be significantly impacted once the tapering starts, so want to exit before that happen
- furthermore, since stock price likely to drop also once the tapering starts, I'm thinking can switch over to shares for higher yield return (and better capital gain when market subsequently recover)
- I already have my OA/SA "bond" with CPF as not using them for my mortgage installment

I'm new to investing, so will appreciate if you can advice whether this makes sense

I am no position to advice as I consider myself as an amateur in the world of investing. All I know is, if everyone expect something to happen, it will be the least chance of happening. So, just prepare to take advantage anytime when it happens.