No. of Recommendations: 0
I have been Foolish for some years and am (I believe) properly prepared with equity investments for my approaching
retirement. However, my partner was NOT an investor and has 15 $10,000 series E bonds which right now have a
total value of $270,000. He has perhaps 10 years until retirement. Cashing even one of these bonds would be a big tax
hit since each is currently worth $18,000. What would be a Foolish course of action for us?


Unfortunately the E and EE bonds are not very good investmets, in my opinion, for long term needs. Maybe the goverment should add a warrning that they my be hazardous to your financial life.

Determin the net cash after selling the bonds and paying the tax. If a 10% stock market return will be better than the bonds return sell now and buy equity investments. Remember retirement will last for years and he will need some equity help all his life to keep up with inflation.

He should stop buying bonds and start buying equity investments.

A few hours with a fee only planner maybe a good investment for your partner. He may need an education in investments and how to handle risk.

Maybe he should sell one or two bonds now so they will be taxed in 1999, then several in 2000 etc if that makes the change easier for him. Check the tax brackets to determin amount to sell.
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