Fixed Interest Investments

By Jason Fittler

Interest rate cuts are all headline news right now, however this only affects around 30% of the population who have large mortgages.

If you are a self funded retiree then the rate cut has the opposite effect of reducing your income and with more rate cuts to come your income will continue to decrease.

If you are holding term deposits or cash you will note that the return you are currently getting is barely covering inflation and tax.

The solution is to take a little bit more risk and look to invest in listed Fixed Interest products.

These are offered by the big blue chip companies who need to raise funds and do not want to offer more shares.

Fixed interest products offer a higher yield than term deposits and more securities then direct shares.

Each fixed interest product has different features which determine the risk and the return of holding the investment.

We have put together a portfolio of low risk fixed interest products which is currently yielding around 7.2% per annum.

For those happy to take on more risk then you can earn over 8% per annum.

The type of investments we look at are over the counter bonds, preference shares and debt securities.

If you are worried about further rate falls and comfortable taking a little more risk then now is the time to get invested into Fixed Interest.

For more information on this type of investment please contact us on 07 4771 4577.