When you retire, one of the most popular ways to generate passive income is to increase your other sources of money, such as investing in bonds. Many fail to do this and end up suffering when they are retired and don’t have any source of income.
Imagine you are 65 years old. You are debt-free, own your home, and have amassed $500,000 in savings over a long professional career. You can choose to invest in bonds to ensure you reap their benefits during your retirement period.
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What are bonds?
In general terms, bonds are issued by the Federal Government to raise funds to pay the public debt and finance the activities of the Federal Government. You lend your money to the Government and, after some time, receive the invested amount, plus interest on the contracted amount.
These assets are considered fixed-income investments with pre-established remuneration and term conditions. They are a low-risk option for investors since the Government will hardly be able to go bankrupt.
How to invest in bonds?
First of all, it should be noted that, as with other investments, it will be necessary to choose a reliable and safe brokerage. There are several companies available, and you can choose the one that suits you best.
After completing your registration, you will need to transfer the money you want to invest to your brokerage account. Once that’s done, it’s time to find the available title that suits you best.
When choosing the option, simply define the amount destined for the investment and make the payment—that simple. At https://www.iocbc.com/products-and-solutions/bonds, the entire process is basically digital, without any complications or bureaucracy.
What are the advantages of investing in bonds?
Have you decided to invest in bonds as your other source of income? There are various benefits you will reap when you invest in bonds.
Low investment
Public bonds are ideal for those who want to start investing but do not have a large amount available.
That’s because the initial investment values are quite low, thus favoring even people with lower income who want to organize themselves financially.
High liquidity
With one of the shortest terms on the market, when you need to redeem the investment made in public security, the amounts are available in your account within one business day. This speed is due to the daily repurchase of securities made by the National Treasury, allowing investors to sell their assets and receive funds whenever they want.
Greater security
Investing in bonds is one of the safest investments you will ever make. The chances that it will not pay you are practically nil. This type of investment is ideal for more conservative profiles or those who don’t have much money to lose.
Lower rates
Another advantage is precisely related to the low fees charged to investors. Normally, only a fee of 0.3% per annum is charged for the safekeeping of the asset.
So, now that you already know the advantages of investing in bonds, be sure to research the subject and see your money yield much more than if you were stuck in savings!
