A bond is a loan that the bond purchaser, or bondholder, makes to the bond issuer. Governments, corporations and municipalities issue bonds when they need capital
An investor who buys a government bond is lending the government money. If an investor buys a corporate bond, the investor is lending the corporation money. Like a loan, a bond pays interest periodically and repays the principal at a stated time, known as maturity.
Investing into Bonds
The bond market is by far the largest securities market in the world, providing investors with virtually limitless investment options. Once viewed as a means of earning interest while preserving capital, bonds have evolved into a $100 trillion global marketplace that can offer many potential benefits to investment portfolios, including attractive returns.
Most bonds provide our investor with “fixed” income. On a set schedule, whether quarterly, twice a year or annually, the bond issuer sends the bondholder an interest payment, which can be spent or reinvested in other bonds or stocks.
What is an annuity
An annuity, on the other hand, is an insurance contract. We purchase Annuities on behalf of our clients from insurance companies other individuals. There are many different ways we can structure an annuity but, generally, they’re designed to provide an income stream.
Depending on how we set the annuity up, you may receive these income payments for a set period or for the rest of your life. You will also have the option to pass on your annuity payments to a spouse or another beneficiary when you decease. An annuity can also be immediate, rather than deferred, meaning that the payments begin within one year of purchasing it.
Conclusion
Our experienced and professional advisors will devise a unique plan that's tailored for each client's individual needs. taking into account income, portfolio diversification and ultimatley your financial goals.