There are worse things than paying tax on profits, I am buy and hold on shares but if I had to pay tax on bond capital appreciation it would be no big deal.
Good to know but a first world problem :) making too much money darn have to pay tax :p
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There are worse things than paying tax on profits, I am buy and hold on shares but if I had to pay tax on bond capital appreciation it would be no big deal.
Good to know but a first world problem :) making too much money darn have to pay tax :p
First World problems are, at the end of the day, still problems.
But usually nicer to have than Other World problems.
So enjoy 'em while you have 'em ! !
I have roughly equal amounts in shares and bonds...the average return, (for my portfolio), from shares (dividends not cap gain) is several % points greater than bonds. Bonds in last several years have as you say been dropping and are not as attractive currently as dividend yields available. Most of my bonds were purchased in 2012-2013 when good yields were more easily available. Personally I think it comes down to how conservative you are. A bond will still be better than a TD in all probability but does have the advantage over shares of not being as vulnerable to share market volatility. Its all relative...in a climate of capital loss and 3% divs..a bond at 4.5% looks good. A share market crash/correction gives good opportunities (IN SHARES NOT BONDS) for a long term thinker.