Trish Barrett wanted better returns than her term deposit to supplement her allocated pension and fund her on-going lifestyle. That’s where Corporate Bonds came into play.
After selling her home, Trish had a relatively large amount of money to invest. She initially held her money in a term deposit, however with interest rates at historic lows she quickly realised that the returns from the term deposit weren’t going to be enough to generate a sufficient income.
“I was desperate to get a better return on the fairly substantial amount I had parked in a term deposit. At around 2.6% interest, it definitely was not going to provide a fixed income for me to supplement my allocated pension and on-going lifestyle.” Trish said.
Trish’s investment portfolio consisted of a tax free managed superannuation fund which provided a monthly allocated pension, a small share portfolio and a term deposit.
It was important for Trish to protect her superannuation investment as it was tax free and she was no longer in a position to make further super contributions. Generating a consistent income stream and preserving those assets you’ve worked hard to acquire is fundamental for investors in retirement. In addition, Trish wanted to invest in a product that would give her a fixed income return to reduce her allocated pension from the superannuation fund.
Trish attended a FIIG Securities presentation organised by her Probus Club, where she met FIIG adviser Jenna Labib. “After meeting with Jenna, I felt confident the returns from the suggested bond portfolio would give me a relatively low risk return on investment that I required for my continued quality of life” she said.
Corporate Bonds offer predictable income, capital stability, diversification and generally pay higher income than term deposits, which fitted perfectly with Trish’s overall investment strategy by supplementing her allocated pension with a fixed monthly income and allowing her to retain the tax free effectiveness of her superannuation fund.
“The key positives of having a bond portfolio are the monthly income stream I have and the client support that FIIG gives me through my FIIG investment adviser.” Trish said.
She added, “The advice and service from Jenna has been second to none - in all respects, extremely professional.”
Trish continued, “Overall, the Bond portfolio has met my major objectives of providing a relatively conservative and low risk investment portfolio while giving me a return on investment that enables me to meet my lifestyle requirements.”
With Trish’s bond portfolio returning over 5% p.a., Corporate Bonds provide her with returns double the size of her term deposit, and yet still maintaining the certainty of the income.
“By investing in a bond portfolio, and gaining the subsequent monthly income, I was able to reduce the allocated pension from my superannuation fund, thus protecting the tax free benefit of that investment. My Bond portfolio is definitely meeting my needs”.
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