Investing in income producing real estate is one of the safest and most secure vehicles available these days but many people aren’t aware that funds from Individual Retirement Accounts (IRA’s) can now be utilized for this type investment. Instead, trends in a city or town are a much more effective method of determining the value of real estate property.Canada is a very large country with its provinces separated by vast areas of land. Real Estate investments are based upon the locations, so different Investment opportunities will have different results. Does Perennial’s 4.65% Bond Have Sufficient Margin of Safety? This is consistent with the analysis based on Benjamin Graham’s criteria of earnings coverage and stock value ratio, which showed that all 3 bonds (together with FCL’s 3.65% bond) do not have sufficient margin of safety. I am been participating in the stock market for the past 30 years and will not totally switch to passive investing. The ROCs are awarded for a period of 20 years so existing schemes will have some visibility for some time to come however some managers are looking to diversify in overseas markets. About 2 years ago, I blogged about setting up a passive portfolio of 70% stocks and 30% bonds and wondered if it could be the worst time to invest.

But reducing the risk factors they also encourage the investors to invest more funds thus helping the portfolio to grow. You can read more about it in The Anti-Fragile Portfolios. How will the stock market and the 2 passive portfolios perform in the next 12 months? However, I am not pulling any money out of the 2 passive portfolios. However, individual prefs and perps may have their own investment merits. It’s always a good idea not to put all your eggs in one basket so if the market goes south you still have other assets that are performing well for you. Other trusts in this sector include Greencoat UK Wind (UKW), the largest in the sector with assets of £1.6bn but currently trading on a hefty 15% premium to net assets. Then we have Bluefield Solar Income (BSIF), much smaller in size but also on a hefty premium. Does FCL’s 3.65% Bond Have Sufficient Margin of Safety?

When that happens, do you head straight for the emergency exit and parachute to safety? You will be left devastated in you suffer losses and you do not have enough cash in hand to take you through a bad day. Either I won’t make enough to make a difference, or I’ll lose it all! Investing is a way to make your hard-earned money work for you so that you can work less to have more in the future. And when you add it all up, never has the US had more debt relative to GDP (second chart down). It is said that when you compare and calculate the returns and risks associated with buying a property and buying shares, the property wins hands down. In fact, passive investing in index funds is like buying an air ticket to your financial destination. These attributes make India a favorable destination for NRI investments.

You just have to tighten your seat belt and have faith that you have chosen the best aircraft and pilot that will bring you to your financial destination safely. That way you get to enjoy the best of both worlds. Personally, I think we will require a paradigm shift in the way we organise our global economy and our global communities. Actually, you can construct a different line for each bond rating, but for ease of discussion, we will show only 3 lines in this figure. 0.990, which translates to a YTM of 3.826%. If we think FCL’s bond should have a Baa3 / BBB- rating, its rightful YTM should be 4.216% as shown in the figure above. Also shown in the figure in green is the YTM for the Singapore Government Securities (SGS), which provide a risk-free return for various bond maturities. Using FCL’s 3.65% bond as an example, the YTM is closer to the blue line (A3 / A- bonds) compared to the red line (Baa3 / BBB- bonds) as shown in the figure above. To determine the right pricing for these bonds, you need to know what is the credit rating of the bond and the Yield-to-Maturity (YTM) for bonds with similar ratings.