When looking to build wealth, many investors turn first to bonds and the stable income they offer. But while bonds can help build financial capital, they may not be the best choice for long-term investors who have a vision of a better future. Fixed income offerings, or bond sales, aim to provide regular income for decades to come. They usually come with benefits that make them more than just investment tools. They’re also ways to secure a better future. Here are five reasons why you should buy fixed-income offerings instead of simply buying bonds.
1) Fixed income offerings have better liquidity
One of the best things about bonds is that you can always sell them and make money. Unlike stocks, you can take your profits and then immediately buy more bonds to lock in your gains. But bonds aren’t free. They come with a small management fee, which can eat into your profits if you decide to sell them midway through a decade. And if your investment strategy involves diversification, you’ll have to pay another management fee for each investment you make. With the help of Joseph Stone Capital LLC, you can secure your future.
2) Fixed income offerings provide a guaranteed income for life
Most bonds don’t provide you with a way to secure a future. That’s where fixed-income offerings come into play. They guarantee you a regular income for the rest of your life. The fixed rate may sound scary at first, but remember, you’re paying for it for the rest of your life. You might not need to start worrying about running out of money when you’re many decades into your retirement.
3) Fixed income offerings increase financial security
You may have heard the saying that money never fears inflation, only taxes. That’s because when taxes are added to inflation, bond investors end up with a smaller amount of money. But that’s not the case with fixed income offerings. You don’t have to worry about taxes rising at all. If you choose an offering with a long-term fixed rate, you won’t have to worry about taxes affecting your income for the rest of your life.
4) Fixed income offerings protect against rate hikes
Bonds are great when interest rates are low. But what happens when interest rates start to rise? Most bonds will let you call them to get your money back. But that’s not the case with fixed income offerings. These are investments, not loans, and they come with a set term. As long as you’re willing to wait 10 years before you can cash in your bond, you won’t have to pay any interest on it. With the help of Investment Expert Joseph Stone Capital, you can easily invest in fixed-income offerings.
5) Fixed income offerings are tax-efficient
Like most investments, bonds come with a tax bill. But unlike stocks, where you have to pay taxes on your gains even if you’re just keeping them, with bonds you don’t have to. That means you can simply keep buying more bonds until your tax bill is paid, and you avoid having to pay any federal, state, or local taxes on your earnings. If you have enough income to cover your tax burden, that is.