Investors who hold a bond to maturity (when it becomes due) get back the face value or "par value" of the bond.But investors who sell a bond before it matures may get a far different amount.If you plan to take your bonds to a local bank, check with the financial institution beforehand to see whether it redeems savings bonds.
"I have just read that bonds aren't a good investment right now. " This is a question I've heard almost every week since the beginning of the year. I actually have read that some types of green vegetables in excess can cause problems for people with certain medical conditions (too much Kale for someone with hypothyroidism, for example). When you own an individual bond, you can hold it to maturity and you know exactly what you will get. It matures in five years and pays a 3% coupon rate. Your bond has four years left until maturity, and the going rate on four-year bonds is now 4%.
Liquidation is the process of bringing a business to an end and distributing its assets to claimants.
Once the process is complete, the business is dissolved.
Dana Anspach, CFP, RMA, is the founder of Sensible Money, LLC, a fee-only registered investment advisory firm which serves a national clientele.
She is the author of "Control Your Retirement Destiny" (2nd edition), Social Security Sense, and writes for The Balance as their expert on retirement decisions.