Thinking ahead - Helping you make sense of all things retirement

Welcome to your February issue

Unravelling the mysteries of Bonds

The last two issues of Thinking Ahead have concentrated on cash and equities, two staple investments in many investment portfolios.

This month, we move to bonds – perhaps the least well-understood type of asset. Bonds feature in most people’s investment portfolio, even although you may be blissfully unaware that you own them. Bonds are particularly useful for people who are taking income withdrawals from their pension fund, because they pay a fixed income.

But what are bonds? What makes their price move? How does the yield from bonds relate to the price? And what are the risks and rewards?

This month’s issue aims to demystify bonds, bringing you information to help you decide whether they should form part of your investment portfolio. It’s important reading for anyone who holds bonds – or suspects that they do!

John Lawson - Editor

What are bonds and how do they work?

What does the jargon mean? What makes the price of a bond go up or down... and how does the price relate to the yield? We’ve got the answers.

Read our guide

Bonds: balancing risk with reward

Like a bank deposit account, bonds pay a rate of interest – but that doesn’t mean they’re risk-free. We explain why.

Find out more about interest on bonds

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