Hi, I have a bunch of bonds that I get 6.45% income from. They are 15 year bonds so I can't sell them for 15 years. If I list them on Investments then the program will dip into them for retirement... i.e. will model selling them if needed to meet retirement income. Is there a better way to model this?
Thanks,
Marty Z.
Yes. Don't model the principal but instead model the income using Cash Infusions. You can even have the income stop in 15 years when the bonds are due. At that time you can use another line item for the principal being returned as a one time lumpsum in 15 years. Or if you plan to roll them into another set of bonds then use a line item to model that income starting in 15 years.
The only downside to this approach is that the Savings Graph will not be including the value of the bonds in the "Total Investments".