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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2545
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Customer Question

couple aged 85 has 80% port. in highest rated corp.and agency lomg term (7yr) individual bonds with highest cupons and use interest for play.Means paying big premium so YTM is low but we will be dead so kids can worry about that. They get all.Are we missing downside or traps? Any better way when protection of nest egg is absolute top priority-but not to the extent of sitting on m.mkt stuff
Submitted: 11 years ago.
Category: Finance
Expert:  R. Greg Paszkiewicz replied 11 years ago.
The only problem I see is if you live until the bonds mature, you will have (depending on the size of the premiums) substantially less money to roll over and generate income with. What is the YTM on these bonds? Do you need all of the interest they generate to live on? What tax bracket are you in?