Saturday, 14 December 2013

Tax free bonds : A must for any retirement portfolio

Tax free bonds have been coming out in droves over the last year.  The Indian government empowered multiple companies to issue tax free bonds to help generate working capital.  This has given a unique opportunity for retail investors to lock in an almost risk free guaranteed rate of return for long periods of time.  For early retirement enthusiasts like myself, tax free bonds provide a much needed route to invest a part of the portfolio to generate risk free returns.  There are three big concerns for any early retiree, that he or she has to solve to enable a successful exit from the usual salary based working environment.  Tax free bonds solve two of these concerns in the most efficient manner possible.  This makes tax free bonds a no brainer key component of each and every early retirement portfolio.