Everand Logo

Welcome to Everand!

  • Kiplinger

    Rates Are Rising. Is It Time to Sell Your Bonds?

    by Ray E. LeVitre, Investment Adviser, CFP, Founder, Managing Partner, Net Worth Advisory Group Apr 11, 2018 6 minutes

    With interest rates still close to historic lows there has been lots of talk about how rising interest rates will reduce bond values. This hasn't been helped by President Trump's trade war threats, which have the potential of causing rising prices and higher inflation.

    The Federal Reserve has raised rates six times in the past three years. Even though rates are rising, there are still many reasons to hold bonds. One of the most important is that a portfolio that includes bonds will help investors weather the storms of the stock market and keep them invested, rather than selling when stocks drop. If you don't stay invested in stocks, it is unlikely that you will keep pace with inflation, which could jeopardize your reaching your financial goals. In fact, if the recent market volatility made you a little jittery, you may actually want to increase your bond exposure now, rather than reduce it.

    Making a Case for Bonds

    Let's start by examining the reason you added bonds to your portfolio in the first place. The main reason to buy bonds is to have an asset that hopefully grows

    You’re reading a preview, subscribe to read more.

    More from Kiplinger

    Kiplinger5 min read
    4 Steps for Managing Income Withdrawals in Retirement
    If you’re like most Americans nearing retirement, you’re worried about whether you have enough savings. In fact, only 22% of those approaching retirement believe they’ve saved enough to retire comfortably. At a time when the stock market is down, inf
    Kiplinger5 min read
    What You Need to Know About Life Insurance Settlements
    Your life insurance monthly premium can start looking less and less appealing once you’ve retired. It’s a scenario Dan Simon, a retirement planning adviser with Daniel A. White & Associates in Middletown, Del., has seen quite often, even with his own
    Kiplinger3 min read
    Using Your 401(k) to Delay Getting Social Security and Increase Payments
    Although you can start collecting Social Security at age 62, you can get much higher monthly payments if you wait as long as age 70. But many people want to or must retire before 70. If you’re one of them, consider a possible strategy, backed by rece

    Related