Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Abundance Debentures for retirement income?
Old 10-12-2014, 08:04 AM   #1
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Abundance Debentures for retirement income?

Abundance is a UK company that invests in renewable energy schemes and sells debentures to the public.

https://www.abundancegeneration.com/

The investment is long term, usually lasting for 20 years, although there is an unregulated market where you can sell your debenture if there's anyone who wants to buy it. There is a 1.5% management fee charged by Abundance.

The investor might invest $1000 and then receive annual income that is composed of some return of capital and some interest. An example is here

https://www.abundancegeneration.com/...084/calculator

The internal rate of return is given as 7% and each year for 18 years the investor receives $55 in return of capital and $44 in interest making a total payment of $1798. What are your thoughts?
__________________

__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-12-2014, 08:49 AM   #2
Recycles dryer sheets
 
Join Date: Jun 2010
Location: Southwest Florida
Posts: 326
Run, don't walk. As a debenture holder you are an unsecured creditor for the entire term of the bond. Sounds extremely risky to me.
Bruce
__________________

__________________
Gill is offline   Reply With Quote
Old 10-12-2014, 08:56 AM   #3
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by MBMiner View Post
Run, don't walk. As a debenture holder you are an unsecured creditor for the entire term of the bond. Sounds extremely risky to me.
Bruce
I think that's true in the US, but not the case in the UK. However, these things still look risky as it's a small company in a small volatile sector.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 10-12-2014, 11:46 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Debentures do have some advantages. Much to be said for being able to just clean them in a glass by the sink.
__________________
calmloki is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll: Do YOU have a floor income % built into your retirement income plans? Midpack FIRE and Money 45 01-02-2014 01:14 AM
Book Abundance-the future is better than you think Sarah in SC Other topics 21 12-11-2012 09:36 AM
Current Income Vs. Retirement Income tgotch FIRE and Money 27 05-30-2008 05:23 PM
Does passive income = Retirement Income? Bree Young Dreamers 14 05-07-2008 09:53 AM
"The Secret" movie, abundance psychology free4now FIRE and Money 23 12-08-2006 06:50 PM

 

 
All times are GMT -6. The time now is 12:13 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.