Bonds

Forum_User_2

Hello fellow MSErs

First time poster many time reader here,

I am interest in growth bonds and wonder if anyone has any advice or a list of high paying bonds. And any general info which may help me, such as whether I am better with guaranteed growth bonds or stocks and shares bonds. I have heard talk in certain circles that the stocks and shares bonds are where 'its at' at the moment, but I'm not sure what action I should take next.

I am only talking around a few grand here but its money I don't need in the short term (would consider locking away 5 maybe 10 years, and adding to the pot in that time as well) and would like it to work as hard as it possibly can.

Until next we speak, keep MSing, keep Martining :money:

dunstonh

I am interest in growth bonds and wonder if anyone has any advice or a list of high paying bonds.

can you define what type of bond you are referring to? "bond" is the most misused term in financial services. It can cover a number of product/investment types.

whether I am better with guaranteed growth bonds or stocks and shares bonds.

guaranteed growth bonds are more correctly known as structured products
stocks and share bonds dont exist but probably relate to investment bonds which are a tax wrapper and can contain stocks and share investments.

I am only talking around a few grand here

Which would eliminate investment bonds as they are typically best placed for 6 digit investments. Structured products are probably out as well as you shouldnt really put more than 25% of your investments in structured products and no more than 10% with one market counterparty.

I have heard talk in certain circles that the stocks and shares bonds are where 'its at' at the moment

I doubt it seeing as there is no such thing as that

vaporate

Forum_User wrote: »

Hello fellow MSErs

First time poster many time reader here,

I am interest in growth bonds and wonder if anyone has any advice or a list of high paying bonds. And any general info which may help me, such as whether I am better with guaranteed growth bonds or stocks and shares bonds. I have heard talk in certain circles that the stocks and shares bonds are where 'its at' at the moment, but I'm not sure what action I should take next.

I am only talking around a few grand here but its money I don't need in the short term (would consider locking away 5 maybe 10 years, and adding to the pot in that time as well) and would like it to work as hard as it possibly can.

Until next we speak, keep MSing, keep Martining :money:

In my opinion it sounds like you are suited for 'normal' bonds that locks your cash between 1 to 5 years if you only have a few thousand (still alot of money of course). No risk types.

You should do your own homework on this via google.

Forum_User_2

dunstonh wrote: »

can you define what type of bond you are referring to? "bond" is the most misused term in financial services. It can cover a number of product/investment types.


guaranteed growth bonds are more correctly known as structured products
stocks and share bonds dont exist but probably relate to investment bonds which are a tax wrapper and can contain stocks and share investments.



Which would eliminate investment bonds as they are typically best placed for 6 digit investments. Structured products are probably out as well as you shouldnt really put more than 25% of your investments in structured products and no more than 10% with one market counterparty.



I doubt it seeing as there is no such thing as that

You don't get to tell me that something doesn't exist when I know it to exist

My 'own homework' linked me to MSE. Can I have a link of what's on offer now? Anything around 10%?

Hodgehappy

The post office have some reasonable ones at present

dunstonh

You don't get to tell me that something doesn't exist when I know it to exist

There is no such product called that generically. It could be a misused marketing name or an internal name (some of the banks hide behind equity bonds or similar rather than use the correct name).

Can I have a link of what's on offer now? Anything around 10%?

10% what?

You need to narrow it down more otherwise we could end up listing 50,000 odd products.

purch

I have heard talk in certain circles that the stocks and shares bonds are where 'its at' at the moment

Except that they are 100% different things..

A stock/share is you buying equity in a company/entity.

A Bond is a you loaning money to a company/entity.

Forum_User_2

BONDS LINKED TO STOCKS AND SHARES, i.e. you take out a bond and the profit margin is linked to the stock market. They are frequently referred to as stocks and shares bonds.

But, as I said, what I am looking for is something to do with a few grand, which I can lock up for around 5 years if needs be, MAYBE even up to 10, but I'm generally looking at around 3-5 here. I don't mind having no access to it, but what I am looking for is what is likely to give me the highest growth yield.

I don't mind if it has a risk element to it but would preferably like a guaranteed growth, and a decent one at that.

Forum_User_2

BONDS LINKED TO STOCKS AND SHARES, i.e. you take out a bond and the profit margin is linked to the stock market. They are frequently referred to as stocks and shares bonds.

But, as I said, what I am looking for is something to do with a few grand, which I can lock up for around 5 years if needs be, MAYBE even up to 10, but I'm generally looking at around 3-5 here. I don't mind having no access to it, but what I am looking for is what is likely to give me the highest growth yield.

I don't mind if it has a risk element to it but would preferably like a guaranteed growth, and a decent one at that.

There is no such product called that generically.

There is.

dunstonh

Forum_User wrote: »

BONDS LINKED TO STOCKS AND SHARES, i.e. you take out a bond and the profit margin is linked to the stock market. They are frequently referred to as stocks and shares bonds.

But, as I said, what I am looking for is something to do with a few grand, which I can lock up for around 5 years if needs be, MAYBE even up to 10, but I'm generally looking at around 3-5 here. I don't mind having no access to it, but what I am looking for is what is likely to give me the highest growth yield.

I don't mind if it has a risk element to it but would preferably like a guaranteed growth, and a decent one at that.

There is.

There is no generic product of that name.

You are now describing what are generically called structured products.

They are not bonds. Although in the past some referred to them as guaranteed equity bonds. However, once it became clear they were not guaranteed, that soon stopped.

jimjames

Forum_User wrote: »

BONDS LINKED TO STOCKS AND SHARES, i.e. you take out a bond and the profit margin is linked to the stock market. They are frequently referred to as stocks and shares bonds.

But, as I said, what I am looking for is something to do with a few grand, which I can lock up for around 5 years if needs be, MAYBE even up to 10, but I'm generally looking at around 3-5 here. I don't mind having no access to it, but what I am looking for is what is likely to give me the highest growth yield.

I don't mind if it has a risk element to it but would preferably like a guaranteed growth, and a decent one at that.

Probably a good idea to listen to Dunstonh's comments as he has a far better understanding of what products are available.

If you are prepared to leave the money for 5-10 years then you may be better off to invest directly in a share based ISA. You don't then have any of the lock ins that the structured products have. The amount isn't guaranteed but at least you will benefit from 100% of the growth of the stock market plus dividends unlike these products.