Money questions on investment bonds and gilts answered by our resident investment and money saving expert.
Money Questions on Investment Bonds & Gilts
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Government Bond Gilt Question:
Should I buy a government savings bond at the moment, or are they likely to be devalued again as I read there were by the credit crunch?
Investment Bond Answer from Money Expert Jason Witcombe:
Just to be clear on definitions, what I think you are referring to are Gilts (Government Bonds) rather than National Savings & Investments Savings Certificates or Bonds. I would urge you not to try to “time the market” but instead make any investment decision on a long-term risk and reward basis rather than trying to work out what the economic indicators seem to suggest might happen in the short term, as those indicators might be wrong!
We believe the primary role of fixed income is to reduce the risk for our clients. It also plays an important part in increasing the yield of portfolios. Buying Government bonds isn’t going to make you rich overnight so if your question is regarding a market timing “flutter” there are better things to buy. If, however, it is part of a sensible, long-term investment strategy, I don’t think there is any reason to be put off investing in bonds but just with equity investment, don’t put all your money in in one go.
Jason Witcombe APFS, CFPCM is a Chartered Financial Planner at Evolve Financial Planning - www.evolvefp.com. Got a money question? In need of some money saving advice from an expert? Put your question to Jason by emailing us here and find out more at: Ask a Money Expert
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