Bond Yield definition around 31:30 isn't correct. The yield is the interest, if you define it to include the capital gain then the inverse relationship between bond price and interest rates doesn't work.
20:39 I think your family friend was maybe advising you to put your money under the mattress to avoid having to declare it as income, and not having to pay income tax on it, which would be a significant savings as long as you got away with it, which is increasingly hard these days. I'm not advising tax fraud, just saying that's probably what she meant, lol. Taxes are important.
Thanks for watching Keith! That would indeed a more logical explanation, but she was specifically referring to income tax on interest earned on the money, not the receipt of the money to begin with.
I regularly withdraw money and put it under the figurative mattress. REASON On £1000 I can get perhaps 70 pence in interest per annum. BUT for every £500 over £16000 the Council reduces my rent allowance by £1 a week, i.e. £50 a year. On £1000 that's £100, or 10%. Clearly thousands of times the interest that would accrue in a bank account. 😀
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Thanks a lot Alex sir, it was very informative indeed..
Very well explained and taught - thank you, Alex
Great lecture !
Bond Yield definition around 31:30 isn't correct. The yield is the interest, if you define it to include the capital gain then the inverse relationship between bond price and interest rates doesn't work.
Finance Simplified!
Thanks Prof Alex. I've been following for a while now on LinkedIn. If there's anything I can say here is that there's value for time spent. Thanks
Thank you from the Philippines. :)
Clear, thank you.
21:59
"It's still worse to save your money in a mattress..." until they decide to implement negative interest for private accounts that is.
20:39 I think your family friend was maybe advising you to put your money under the mattress to avoid having to declare it as income, and not having to pay income tax on it, which would be a significant savings as long as you got away with it, which is increasingly hard these days.
I'm not advising tax fraud, just saying that's probably what she meant, lol. Taxes are important.
Thanks for watching Keith! That would indeed a more logical explanation, but she was specifically referring to income tax on interest earned on the money, not the receipt of the money to begin with.
I regularly withdraw money and put it under the figurative mattress.
REASON On £1000 I can get perhaps 70 pence in interest per annum. BUT for every £500 over £16000 the Council reduces my rent allowance by £1 a week, i.e. £50 a year. On £1000 that's £100, or 10%. Clearly thousands of times the interest that would accrue in a bank account. 😀