May I ask what strategy you use to mix this into your PF? I see that the payout is around 5 percent p.a.. - which is pretty good ...
••
@Charmin
Hi,
My strategy is "safe wealth accumulation" without experiencing major fluctuations and sleeping peacefully.
I do this with real estate and use leverage. However, I have had to change strategy since 2018 due to ECB interest rate hikes.
When interest rates are high, I invest in bonds and take the high interest rates as income.
If the central banks lower interest rates over time, this will have a positive effect on bond prices, causing prices to rise and yields to fall.
Until we reach the trough with the interest rate cuts, I build up cash and look for real estate investments.
Otherwise, if I can't find a suitable property, passive income will continue...
Hi,
My strategy is "safe wealth accumulation" without experiencing major fluctuations and sleeping peacefully.
I do this with real estate and use leverage. However, I have had to change strategy since 2018 due to ECB interest rate hikes.
When interest rates are high, I invest in bonds and take the high interest rates as income.
If the central banks lower interest rates over time, this will have a positive effect on bond prices, causing prices to rise and yields to fall.
Until we reach the trough with the interest rate cuts, I build up cash and look for real estate investments.
Otherwise, if I can't find a suitable property, passive income will continue...
••
@Immoinvestor1981
Thanks for the information, very enlightening. And; we are quite close to each other there. I have also bought real estate over the last few years (since 2015), but had never considered bonds as a relatively safe haven.
I am also in the process of increasing my cash position, but in case we get into a recession or a bear market so that I can buy more cheaply.
The bond ETF is now definitely on my watch list!
Thanks for the information, very enlightening. And; we are quite close to each other there. I have also bought real estate over the last few years (since 2015), but had never considered bonds as a relatively safe haven.
I am also in the process of increasing my cash position, but in case we get into a recession or a bear market so that I can buy more cheaply.
The bond ETF is now definitely on my watch list!
•
22
•I normally buy bonds directly as individual investments. Last year I secured 6.38% for 10 years with Romania.
These yields have fallen.
However, high-yield corporate bonds currently yield more than government bonds and are too risky for individual purchases.
As an ETF, the risk is spread over several hundred companies and it also offers the option of buying in smaller quantities as a savings plan.
These yields have fallen.
However, high-yield corporate bonds currently yield more than government bonds and are too risky for individual purchases.
As an ETF, the risk is spread over several hundred companies and it also offers the option of buying in smaller quantities as a savings plan.
•
11
•