Last week I wrote an article on Portfolio Construction – Bonds or Stocks where i wrote that instead of using REITs and Stocks, the bulk of my portfolio to create passive income built up over the last few years had been using bonds. At this stage of my life, I wanted to build a substantial portfolio that has lower volatility, more certainty of cash flow and somewhat better risk-adjusted returns. I was also able to borrow against the investment grade bonds to juice up the returns to ~8%.
The previous time I wrote another article on credit card – Cashback or Miles where i said that whether you prefers to be “rewarded” for your spending with cash rebate or air miles also depend on the stage of your life. Choose one that meets your lifestyle preferences. In life, it is all about choices and what