Through January 31, 2020, subscribers who bought 10 bonds of each BondSavvy corporate bond recommendation made $75 in investment returns for every dollar paid in BondSavvy subscription fees (1). Individual investor subscribers pay a flat fee regardless of how much they invest, and they buy bonds online through their own brokerage. Subscribers who bought 25 bonds of each BondSavvy recommendation made $188 for each dollar paid in BondSavvy fees, and the current BondSavvy fee represents 0.05% of what they invested. Here’s how it has worked:
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. SUBSCRIBERS' ACTUAL RESULTS MAY VARY BASED ON WHEN SUBSCRIBERS BOUGHT AND SOLD BONDS WE RECOMMENDED BUYING AND SELLING.
(1) Based
on the current BondSavvy two-year subscription fee, which we introduced December 4, 2019. This fee is slightly higher
than the subscription plan that was in place between October 2018 and December 3, 2019. From September 26, 2017 through
March 2018, our monthly fee was $75 and, from April 2018 through September 2018, our implied monthly fee under our two-year
subscription plan was $29. The implied monthly fee of our current two-year subscription is $28.13. Please click
here to view our subscription plans.
(2)With respect to the amount invested, assumes subscriber invested in each BondSavvy recommendation made between the indicated period above. Assumes proceeds from the sales of bonds prior to October 31, 2019 were reinvested in purchases of other BondSavvy bond recommendations or netted against the total investment amount. Amount invested reflects the offer-side quoted price for the purchased bonds and assumes a 0.1-point markup from the quoted price. Please click here to see investment return details for each recommended corporate bond.
(3)Total investment returns include interest income and capital appreciation or losses for each fixed income investment. We calculate investment returns from the day prior to the recommendation date until (i) January 31, 2020 for bonds that have yet to be sold or (ii) until the sell date for bonds that have been sold. Please click here for details on which recommendations have been sold.
(4)Assumes annualized subscription fee of $337.50 based on our current $675 two-year subscription plan. Per footnote 1, BondSavvy has had higher and lower fees during the course of its history.
Making direct investments in bonds rather than through a bond mutual fund or bond ETF offers many advantages, such as higher potential investment returns, greater investment transparency, contractual interest payments, a maturity date, and the lowest investment fees. That said, there are thousands of individual corporate bonds from which to choose, and it can be difficult to decide which corporate bonds to buy.
BondSavvy narrows the universe of corporate bonds to a select number we recommend to our subscribers. We then monitor our recommended bonds and issuing companies and decide whether to recommend buying more bonds, holding recommended bonds, or selling previously recommended bonds. Our subscribers follow the below three steps when making direct investments in corporate bonds:
BondSavvy empowers you to invest in corporate bonds by presenting the best bonds to buy during The Bondcast, a subscriber-only investment webinar we host after companies report quarterly earnings.
You decide which of our recommended bonds to buy and make direct investments through your own online brokerage. Investing in bonds online is an efficient and competitive marketplace, where individual investors can invest at bond prices that are competitive with large bond funds.
Our goal is to maximize the total return on each corporate bond we recommend. Bond prices have ceilings and cannot increase in value to the extent stocks can. We therefore advocate selling bonds prior to maturity when we believe a recommended bond has maximized its investment return opportunity.
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