The average Singaporean can now get corporate bonds for their retirement portfolio, which yield better returns than a fixed deposit. In a little-noticed Business Times page, it was reported that the Monetary Authority of Singapore (MAS) now allows retail investors to buy corporate bonds. The average Singaporean doesn’t know much about these, so it was ignored. But what you should realise is that financial planning for retirement became much easier now that you can purchase corporate bonds.

What is a Corporate Bond Anyway?

Companies need capital to run. Before they can start manufacturing, for example, they need to hire employees, buy factory equipment, and find warehouse space. There are two ways a company can get capital. The first is to sell shares in the company, and that’s what the stock market is about. However, they cannot sell too many shares, as they would lose ownership of the company to the shareholders. The …