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Weekly Blog Round: Researching Bonds

RESP PlanningAs part of my RESP Planning, I have started looking into bonds. I will admit that my dividend investing accounts have no bonds at the moment. It’s not because I don’t believe in it, it’s because my company RRSP plan covers that through the mutual funds offered – I am indexing my defined contribution plan as it is the best option for that account.

Researching Bonds

I started looking at bonds ETFs and I was faced with quite a number of options to my surprise. I started looking into Vanguards ETFs first as they are highly recommend by Andrew Hallam. I also looked into iShare CHB as a friend has money in them and it has done well. Other than that, I will be going through the list of ETFs and comparing them to one another. I’ll need to figure out what kind of bonds I also want to invest in such as government bonds, corporate bonds or junk bonds. I am really just starting and we love to hear your experience.

Readers, do you have a bond ETF you like?

Lunch Update

For the past month, I have managed to bring lunch every day. Whenever I bring lunch, I put $10 aside to invest in my Computershare or Canadian Stock Transfer account. Slow and steady, I build up those accounts. It took my a few weeks to get the habit going but it’s going well now and my investments are better by at least $300.

Worthy Readings

Some weekend reading to share …

Carnivals

Here are the carnivals I was present in the last 2 weeks highlighting a couple of posts I wrote.

Have a nice weekend!

Image: FreeDigitalPhotos.net

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7 Responses to "Weekly Blog Round: Researching Bonds"

  1. Thanks for the mention, PIE!

  2. Thanks for the mention my friend. I really appreciate the blog support you provide.

    As for the best bond ETF, I like XBB. It’s a great all-in-one product that has modest maturity periods and decent yield, even in this rate environment.

    Cheers,
    Mark

  3. Matt says:

    Are you ever locked into a bond? From my understanding when investing in certain bonds, you are locked into a term such as 1-10 years?

    How liquid are bond ETFs?

    Thanks

    • The Passive Income Earner says:

      @Matt

      The individual bond market tends to be more locked but I believe you can sell them – something to investigate. With ETFs, you can trade any day, it’s just like a stock when it comes to trading and it behaves like a mutual funds in a way where it buys many bonds for you and it most cases it will follow an index.

  4. Thanks for the mention!

    I don’t currently have any exposure to fixed income, as I believe bond returns will be lackluster going forward due to rising interest rates (they will come sooner or later). Equities right now is where my money is at.

    I do hope interest rates rise substantially over the next 5-10 years. My plan is to invest heavily into equities now, and when my financial independence nears over the next decade, I’ll go very long on bonds near 40 years old and get my fixed income exposure then as I’ll be living off the interest.

    Best wishes!

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