Integrating fixed income solutions into your portfolio
Your portfolio should work for you in propelling both your short- and long-term goals, and preserving the wealth you’ve worked diligently to grow. Fixed income investments are an essential component of a well-diversified financial plan and can support your aspirations with a reliable stream of income.
With a deep understanding of bonds and fixed income investments, we can help you integrate these core investments into your custom financial plan using a process that is defined, focused and disciplined – the characteristics needed to help preserve your hard-earned wealth, while striving to provide predictable cash flow now and in the future.
Asset allocation and diversification do not guarantee a profit nor protect against loss. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, state or local taxes. If bonds are sold prior to maturity you will receive the then current market value, which may result in a profit or loss. Profits and losses on federally tax‐exempt bonds may be subject to capital gains tax treatment.
Bond prices and yields are subject to change based upon market conditions and availability. If bonds are sold prior to maturity, you may receive more or less than your initial investment. Holding bonds to term allows redemption at par value, barring default or an early call at the issuer’s option. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices rise.
Income from municipal bonds is generally not subject to federal income taxation; however, it may be subject to state and local taxes and, for certain investors, to the alternative minimum tax. Income from taxable municipal bonds is subject to federal income taxation, and it may be subject to state and local taxes.
U.S. government bonds and Treasury bills are guaranteed by the U.S. government and, if held to maturity, typically offer a fixed rate of return and guaranteed principal value. U.S. government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the U.S. government.