How the Government Can Pay You Monthly Income
How the Government Can Pay You Monthly Income
Building wealth is a major goal most people have, regardless of age. Whether it’s buying a dream car, securing a comfortable retirement, or reaching life-changing financial independence, you need a combination of high-yielding income sources to successfully build wealth. And what’s more, if such income is paid to you monthly by the government?
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you’re giving the issuer a loan, and they agree to pay you a certain amount as interest after a scheduled period.
FGN Bond is a bond issued by the Federal Government of Nigeria in exchange for cash at a given interest rate and a repayment period. It also states how payments of the principal and interest will be made.
These bonds are usually issued every month and open in the first week of the month. The tenor of the bond is 2 and 3 years respectively. The minimum investable amount is N5,000; however, you could invest large sums as you may require. Coupons are paid quarterly.
For instance, the FGN savings bond issue for December closed last week. If you invested in the 2-year tenor, the maturity would be December 2024. However, in between, you would receive your quarterly coupon or interest.
The Bonds are often said to be ‘risk-free’. FGN Bonds offer the benefit of regular income with semi-annual interest payments. For investors looking for a regular income stream while retaining capital, this is a viable investment option.
Additionally, bonds can be easily sold to other investors before their maturity date, providing an easy way for investors to resell their bonds.
These bonds are good investment options if you are looking to invest a long time into something that pays you passive income. If you are interested in buying bonds you should get a registered stockbroker or visit the bank for more information.
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