Construct your own income stream for as far out as 2043 with zero coupon Endowment Bonds Endowment Bond Exchange Ltd (EBX) today launched a series of zero-coupon bonds known as Endowment Bonds that can be used to establish a cash flow stream for up to thirty years in the future. They can only be purchased from the Endowment Bond Exchange website at ebx.com.au, where live prices in available maturities will be displayed every day. Endowment bonds are a new financial product that are unique in the Australian retail market and are a genuine alternative to an annuity, but with more advantages. Chief Executive Officer of Endowment Bond Exchange Ltd, Stephen Duchesne said, “Each bond, which is backed by State Government guaranteed bonds or wholesale bank deposits, has a standard pay-out of $10,000 each and matures on 30 June in the year that you select when you purchase it on the website. “The purchase of a number of bonds with different annual maturity dates allows investors to create a sequence of future payments at times and amounts of their own choosing, including the start date which could be deferred many years into the future. “In short, this important new financial product will allow individual investors to construct their own personalised income stream as far out as 2043, something which has not previously been possible to do in Australia. “The purchase price of the Endowment Bonds is a function of interest rates at the time of purchase and the time to maturity of the individual bond, and will change at least on a daily basis. “For instance, an Endowment Bond issued today by the EBX group maturing on June 30, 2025 would have a lower price than a bond maturing on June 30, 2020. “It’s about giving people the ability to buy a known future outcome today, and retaking control of their financial future. “Endowment Bonds bond are designed to appeal to anyone who wants or needs to plan for fixed cash flows, at predetermined times, whether it is for retirement income, school fees, philanthropy, or any other purpose where there is a known future need. “ “We expect particularly strong interest
from the SMSF sector.” “The reality is that many individuals, and organisations, such as self managed super funds,
and charities need targeted fixed cash flow at predetermined times. A portfolio of Endowment Bonds may be the solution,” he said.