Should we cash in our bonds and pay the tax?

Bonds / Fixed Income, Taxes
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February 2017

Mayo, Kerry

Clifton Park, NY
80% of people found this answer helpful

You will pay tax on the interest the bond earned, but an option is to invest the proceeds in a mutual fund or exchange traded fund that will earn you more return on the proceeds than your savings account. You can even buy a fund that invests in treasuries. It should get you more of a return than your savings account. It will throw off taxable interest, but that means it made money. Don't let the tax tail wag the dog. If you pay tax, it means in most cases you've made money and you have more money than you did.

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