Home Feedback Contents Search

Get FREE Practical Parenting Advice Newsletter

Child Behaviour Advice

Quick Poll
Do you think getting parenting support is now easier?


View Results

£360 OFF
Your Family Holiday

Investing in Your Childs Future

WIN FREE Behaviour Whee

Using Corporate Bonds to Invest in your Child’s Future

We all want to have a secure financial future, and we all want to make sure that our children do too. Investing our money wisely can help us to build up our finances so that we can better afford to look after our children and their education. Here we take a look the low-risk investment in the form of corporate bonds and explain what they can do for your finances.

Corporate bonds are issued by companies who are looking to raise funds for expansion and growth. These bonds can be bought by members of the public – essentially you are loaning a company money, and the company will pay you back in regular instalments over the course of the investment. This makes them an attractive investment for those looking for a source of regular income.

A corporate bond is a fixed interest security, which means that the level of payment that you receive from the corporate bond is fixed in advance. This is attractive to investors, particularly in today’s volatile financial climate, as a more secure, regular pay off than can be found when investing in shares alone for example.

You can invest in a corporate bond personally by buying up bonds yourself. However, the cost of trading these yourself will mean having to pay fees on each transaction, and this can outweigh the amount that you make in return.

You can also purchase bonds by joining a corporate bond fund. This way, your money is pooled with other investors’ and this larger collective sum is used to invest in a variety of corporate bonds. This method is popular as it helps to spread investment risk, balancing out any losses that may be made should any corporations default on their bond repayments.

It is important to remember that corporate bonds, because their returns are fixed, can be affected by inflation levels, as well as interest rate levels and general economic conditions. However, corporate bonds have a relatively low investment risk – not as low as government bonds, but not as high as equities.

You can invest tax-free in the form of corporate bond ISA’s. With these investment products, investors’ money is pooled together and used to invest in a range of bonds. Any income that is earned this way is free from personal income and capital gains tax under the government’s current tax rules.

For more information in investing tax-free in corporate bonds, take a look at the Legal & General website, where they have a range of corporate bonds options, including corporate bond ISA’s.

Tuesday, April 28, 2015


Sport activity for kids

Things to do with
the children

Junior ISA from Scottish Friendly
Junior ISA
Invest in your child's long term financial future.



Discount Parenting Books
In association with Amazon.co.uk

Child Trust Fund - Family Investments

Working Tax Credit Calculator - Money for Mums

Giant Reward Charts & Free Stickers from The Naughty Seat


Home ] Up ]

Last modified: 01/29/12