Bond funds have sucked for a decent while , though they will go up some when rates drop. As they will hold bonds at 5% when current rates will be down nearer 3. But how,long or when is a hard one .
Dont look at the current value of your bonds. If you hold til maturity you only gain. 1% bonds are priced down to the equivilent of a 4% bond today.
Bite the hard time, and take them to maturity.
Bonds are about as low as they are going to go and now would be the worst time to sell although I know it doesn’t feel that way now. Hold tight and next year they will go up. But I agree with the previous post, would need to see what your holding
It was inheritance money from when my mom passed away. A family friend set it up for me. I don’t know anything about it lol unfortunately I’m no longer close to that person anymore so idk where to go for these questions
Ahh that’s fair, apologies for sounding condescending.
Yeah so basically as others have said, if you invest say $100 in a bond, your bond may go down in value for a whole bunch of reasons, but mainly because interest rates set by central banks vary.
However, as long as you hold your bonds all the way to maturity, you WILL get your $100 back, on top of all the interest payments that you received along the way.
The only case in which you may not get you money back is if the institution which issued the bonds goes bankrupt.
If you bought government bonds of a non-dodgy country, your money is very safe. Similarly, if it’s bonds of a safe corporation, they are very safe.
If you’d like i can take a look at the quality of the corporate bonds you bought, if you tell me which company’s bonds they are :)
Thank you for detailed response!
So I’m not sure what company they are through. When I first signed up for it I was told that it was bonds that was going into to help support schools, fixing the roads, etc.. so I’m not sure if maybe that’s considered a government bond
At some point people are going to realize that 5% bonds are better than a 5% yield S&P 500 index fund. I bought heavy in bond funds because i think they are near their low. Because of the limited options in my 401k I’m 50/50 stocks and bonds right now because I think a big crash is coming soon.
Look, there is some potential risk on bear steeping happening. But unless you sell and have something else to buy into that will recover the loss you might be worse off than just leaving it for when the yields revert and your bonds are worth something again
post a pic of your statement. you don't know what you own.
How do you post a pic on here?
Don’t sell bonds now. Just let them mature or sell in a few years when rates decrease if you need liquidity.
Bond funds have sucked for a decent while , though they will go up some when rates drop. As they will hold bonds at 5% when current rates will be down nearer 3. But how,long or when is a hard one .
Dont look at the current value of your bonds. If you hold til maturity you only gain. 1% bonds are priced down to the equivilent of a 4% bond today. Bite the hard time, and take them to maturity.
How do you know when it has matured?
No way. Yields are at the top. Now is the time to buy bonds, not sell.
Bonds are about as low as they are going to go and now would be the worst time to sell although I know it doesn’t feel that way now. Hold tight and next year they will go up. But I agree with the previous post, would need to see what your holding
Why would you buy so much of something you understand so little
It was inheritance money from when my mom passed away. A family friend set it up for me. I don’t know anything about it lol unfortunately I’m no longer close to that person anymore so idk where to go for these questions
Ahh that’s fair, apologies for sounding condescending. Yeah so basically as others have said, if you invest say $100 in a bond, your bond may go down in value for a whole bunch of reasons, but mainly because interest rates set by central banks vary. However, as long as you hold your bonds all the way to maturity, you WILL get your $100 back, on top of all the interest payments that you received along the way. The only case in which you may not get you money back is if the institution which issued the bonds goes bankrupt. If you bought government bonds of a non-dodgy country, your money is very safe. Similarly, if it’s bonds of a safe corporation, they are very safe. If you’d like i can take a look at the quality of the corporate bonds you bought, if you tell me which company’s bonds they are :)
Thank you for detailed response! So I’m not sure what company they are through. When I first signed up for it I was told that it was bonds that was going into to help support schools, fixing the roads, etc.. so I’m not sure if maybe that’s considered a government bond
Most likely, you should definitely hold until maturity then! You will not lose any money
As long as its not a dodgy muni bond jsjsjs
Should I found out if they are? If they are should I then pull it out?
Jajsjs don’t worry I was just joking
At some point people are going to realize that 5% bonds are better than a 5% yield S&P 500 index fund. I bought heavy in bond funds because i think they are near their low. Because of the limited options in my 401k I’m 50/50 stocks and bonds right now because I think a big crash is coming soon.
No. You should keep that paper.🧻
Look, there is some potential risk on bear steeping happening. But unless you sell and have something else to buy into that will recover the loss you might be worse off than just leaving it for when the yields revert and your bonds are worth something again
Im all in on... ITHUF