Interest rates have declined, should I sell my bonds?

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	Interest rates have declined, should I sell my bonds? By The-Adviser.com -
SERVICES Money Management Portfolio Reviews 401(k) Rollovers Retirement Financial Plans Estate Plans College Savings Ask The-Adviser Clients Only WHY US Benefits Available Services "Interview Us" Fee Information Disclosures Applications Clients Only THE COMPANY Background Philosophy The Press Policies Opportunities LINKS Home Page Related Links Stock Quotes	New York - Let's say you are holding 30-year Treasury bonds that mature in five years. The bonds pay 7 1/8 percent and trade at a premium due to the current low interest rate environment. Many investors are curious as to whether or not they should take the capital gain and invest the proceeds in new Treasuries. Here is our take. If you are using the bonds to produce income - you probably should hold the bonds. If you sold the bonds and reinvested the proceeds in new bonds, your income level would decline to whatever the current interest rates are paying. If you are using the bonds to produce capital gains and you believe interest rates will decline further - you may want to consider selling the bonds and buying bonds that mature longer than five years. This allows you to capture future additional capital gains that would result if interest rates decline. About Us The Independent Adviser Corporation is a 100% Independent and 100% Objective Financial Advisory Firm that writes buy-side investment research. Our network of independent Fee-Only Financial Advisers serves individuals, families and businesses. They provide financial planning services, tax advice and offer professionally managed asset accounts. They do not underwrite corporate securities nor do they sell any proprietary products. To find out more or get a FREE consultation Ask The-Adviser.com or call 1-800-ADVISER.	Bond mutual funds generally have higher investment expenses when compared to an individual bond. Got an investment question? Ask The-Adviser.com Open a professionally managed account: Brokerage Accounts Traditional IRAs Roth IRAs 401(k) IRA Rollovers 403(b) IRA Rollovers College Savings Retirement Savings Hire The-Adviser.com Click here for our Top Ten Investment Picks Financial Advisory Services Money Management Retirement Planning Portfolio Reviews 401(k) Rollover Assistance College Savings Financial Plans
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