The 2024 case for getting back into bonds

Australian investors kept away from bonds for many years, preferring instead “bond proxies” such as the bank and telco fully franked shares.

And they did the right thing, because bonds have been bad news for the past three years – especially bond ETFs where total returns have let people down.

But now the time may be right for bonds. In the months ahead rates may be set to plateau near these levels, allowing an ideal backdrop for bond investors – especially for low-risk government bonds bought “one by one” and held to maturity.

Who is the guest?

Hugh Roberston of Centaur Financial Services.

Why him?

Robertson is one of the younger advisers in the upper reaches of the The Australian/Barrons Top Financial Advisers list, coming in this year at number 38.

What are the topics?

• The 2024 appeal of bonds

• Tax cuts coming

• HECS and HELP

• Are loans included in super caps?

Question of the week

Regular listener Natalie asks: “My question is about HECS in a rising rates environment. My brother started with an $80,000 HECS debt which has now climbed up to $105,000. As a middle income earner who pays 6 per cent of their salary it’s impossible to pay this back and could be stuck with approximately $6000 in repayments until he retires just to cover the indexation.

Of course CPI will change over the years, but this seems atrocious. The choice seems to be pay thousands of dollars extra each year to pay indexation only, or somehow funnel all your funds to pay off HECS, or perhaps move overseas. Is there anything happening out there to address rising HECS debts in an inflationary environment?”

Questions always welcome to the podcast, via [e-mail]