Life begins at RETIREMENT

With today's interest rate at the money market, I was looking for alternatives to just putting my money in the bank. The other options include real estate, equity market, bonds, annuities and structured financial products.

Each of these have its risks. I had the opportunity of considering BONDS as an option. Interest rates are higher than money markets and annuities. Also, the risk may be lower than structured financial products and equity.

However, what do we need to consider when we are thinking about bonds. Here are some areas you need to consider:

- the issuer (government or corporate and which corporate)
- the issuer's credit quality and rating (Moody's, S&P, Fitch Ratings)
- interest rate
- maturity (short, medium or long term)
- redemption features (call provisions, puts, principle repayment and average life)
- bond price
- yield
- tax
- risk

All in all, a pretty complex analysis before we decide to put money into bonds.

Remember to do your homework, talk to your financial planner about these before putting your money into it. After all, these are our hard earned money that we need at retirement.

I have a general maxim:

- If I need money in the short term (1-3 years), I keep cash.
- If I need money in the medium term (3-5 years), I buy bonds.
- If I need money beyond 6 years, I buy equity.
.
.
Comments? Feedback? Questions? Let me know...Thanks..