Comments on: Investing in Bonds http://www.millionaireacts.com/994/investing-in-bonds.html Escape the Rat Race and Join My Journey to Financial Freedom Fri, 03 Feb 2012 15:10:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: ako ito http://www.millionaireacts.com/994/investing-in-bonds.html#comment-982 ako ito Tue, 07 Apr 2009 03:20:48 +0000 http://www.millionaireacts.com/?p=994#comment-982 Hello, i've had some experience in bonds. I was able to buy certain 3-year government bonds during their offer periods in the early 2000's and was getting some 8%, 9%, 10% interest per annum. The downside is, earnings still get deducted with 20% tax, as compared to bank time deposits which is taxed by just 12% for 3-year lock-in periods. I never got those 5-year bonds because of the 20% tax it carries, as compared to banks' 5-year TDs which are tax-free. What is good about these bonds is that it is "semi-tradable". I sold mine back to BPI Capital when I learned that the price was good. I also had one or two ventures in buying in the secondary market at a slight premium, then selling them later on at a bigger premium. The highest-earning bonds that I got was quoted at around 14.25% p.a. which were issued during the Ramos regime. I think that was called 4-year Progress Bonds, but since I bought them at the secondary market during Erap's time, my net was just around 9% with a remaining term of around 2 years. Hello, i’ve had some experience in bonds. I was able to buy certain 3-year government bonds during their offer periods in the early 2000′s and was getting some 8%, 9%, 10% interest per annum. The downside is, earnings still get deducted with 20% tax, as compared to bank time deposits which is taxed by just 12% for 3-year lock-in periods. I never got those 5-year bonds because of the 20% tax it carries, as compared to banks’ 5-year TDs which are tax-free.

What is good about these bonds is that it is “semi-tradable”. I sold mine back to BPI Capital when I learned that the price was good. I also had one or two ventures in buying in the secondary market at a slight premium, then selling them later on at a bigger premium.

The highest-earning bonds that I got was quoted at around 14.25% p.a. which were issued during the Ramos regime. I think that was called 4-year Progress Bonds, but since I bought them at the secondary market during Erap’s time, my net was just around 9% with a remaining term of around 2 years.

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