No. of Recommendations: 4
I'm not sure she will be holding to maturity at her age. She may need the priciple between now and the maturity date in 20-25 years.

If these bonds are indeed in an IRA, she won't even *allowed* to hold to maturity, due to the mandatory IRA withdrawal rates. It would be more prudent to sell off at least some of the bonds now, and choose new bonds with maturity dates in line with the required withdrawals. For instance, one can estimate upfront the withdrawal requirements for 2003, 2004 and so on, and set things up so that enough bonds mature in those years to provide the money required for the withdrawals each year. Of course, some of the required withdrawals can be provided from other sources (e.g. the money market funds, or the dividend income from the stock/REIT funds), so you may want to adjust your bond ladder accordingly. It is almost certain, however, that at least some of the bonds will have to be sold sooner or later.

One can certainly consider simply holding onto the bonds for now, but it would appear that this is a much riskier route, given that a sale will be forced in the future at some yet unknown price.
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