Probably the wrong forum but don't know where else to put this.

On Friday I received a letter from the DWP. Enclosed was a letter from the same pension company that my (very modest) lump sum pension payment came from a few months back. Same company, different department it would seem.

Anyway, the letter reads:

Dear X

Our Ref: Final Salary XXXXX

Dear Mrs X

Bond: 123456/1 (not the real reference number)

There is a benefit due to you for the above bond.

Now, I'm very intrigued and of course, it arrives on the Friday and I can't find out what it is until tomorrow.

I do remember some 30 years ago when the company I worked for had a meeting with some financial advisor for everyone them extolling the virtues of the pension plan they'd chosen for us - in their own words at the time - the best money could buy.

I have vague recollections of the advisor saying something about investing a portion of our pensions in the pension scheme itself and something about the remainder but what exactly I can't recall.

Anyway, despite searching the Net for information about Bonds, most of them seem to relate to American Bonds and the only information I can get for this country are ISAs. Whatever this Bond is, it was long before ISAs.

If anyone can shed any light on this, please let me know otherwise I will have to kick my heels until tomorrow.

Not clued up on financial institutions or products I'm afraid.

did you work for a gov't / public utility and opt out of gov't scheme? [superannuation etc]

this would have been in the 1990's?

A bond "should" be a Gov backed security, that pays a fixed return per annum. The general rule of thumb is that when interest rates are rising then the price/value of bonds will fall, and if you are living through low interest rates the price/value rises as the bond offers better return than sitting in a bank would.

Basically, they are among the safest places to invest your money for a low risk investor, however the current returns offered by bonds are pitiful Imo

did you work for a gov't / public utility and opt out of gov't scheme? [superannuation etc]

 

 

this would have been in the 1990's?

No. Worked for the gov in the 1970s and that one's already taken care of.

During the 1980s and 1990s I worked in the oil industry and this one, I think relates to when I worked for one of the largest offshore contractors in the world - an American company.

Thanks also to WarrenBuffet for explaining a Bond.

When I find out tomorrow what this is, I'll let you know but whatever it is, it certainly isn't something I was expecting or even knew I had.

Think I'll go and play my piano - less painful than kicking my heels

You may very well have a high yielding bond 6%>, that may very well be a very valuable asset and highly liquid in the current economic situation.

The questions you need to ask is, 1.) What is the % yield on the bond?

2.)How many more years are left on the bond?

3.) What is it's current market value and is it one bond or 100's or 1000's?

4.) Where are all the previous dividend payments?