Financial Focus Review Your Fixed-income Strategy as Interest Rates Rise When interest rates rise, the value of your fixed-income investments, such as bonds, w typically fall. If this happens, how should you p more alfordable, to own bondbased mutual Holding some of your bonds particular rates. Although long-term bond prices - the bonds tend to fall more significantly than uilding a l ur longer-term ones - until they mature may funds and exchange-traded funds (ETFs) that useful during a period of rising interest invest in bonds. Many bond funds and ETFs own a portfolio of bonds of various maturities, so First of all, it's important to understand this amount you could get if you were to sell these they're already diversified inverse correlation between interest rates and bond prices.Essentially, when interest rates rise, erm bond prices, the actual income that lon investors won't pay y because they can purchase newly issued ones that longer-term bonds typically pay higher interest pay higher rates. So, if you sell your bonds before rates than shorter-term ones they mature, you could lose some of the principal To preserve this income and still take bond ladder can help you navigate nger the rising-rate environment. But you also have ou full price for your bonds erm bonds provide may still be hi ge, because another incentive to continue investing in bonds, bond funds or ETFs-namely, they can help diversify a stock-heavy portfolio. If you only owned stocks, your investment statements would probably fluctuate greatly its no secret that the stock market can go on some wild rides. But even in the face of escalating interest rates, bond prices advantage of rising interest rates, you may want to construct a "bond ladder" consisting of short You may be seeing a price drop among your bonds right now, because interest rates generally ntermediate- and longer-term bonds. Because a rose in 2018 and may continue to do so in 2019. While you might t like this decline, you don't necessarily have to take any action, particularly if you're planning to hold these bonds until maturity. Of course, you do have to maturing bonds with higheryielding ones. As consider credit risk the chance that a portion s the case with a your investments, however of the principal and interest will not be paid back to investors - but unless the bond issuers the securities held within it are consistent with certainly dont mean that you should lose your default, which is usually unlikely, particularly our objectives, risk tolerance and financial with investment-grade bonds, you can expect to circumstances. ladder contains bonds with staggered maturity dates, some are maturing and can be reinvested ally - and in a rising-rate environment such as we're currently experiencing, you would be replacing dont exhibit the same sharp swings as stocks, so owning an appropriate percentage of bonds based on your personal circumstances can help add some stability to your investment mi As an investor, you do need to be aware of rising interest rates, but as we've seen, they ou must evaluate whether a bond ladder and interest in bonds as a valuable part of your investment strategy This article was written by Edward Jones for use receive the same regular interest payments you always did, no matter where rates move You can build a bond ladder with individual bonds, but you might find it easier, and perhaps by your local Edward Jones Financial Advison Edward Jones Shawn Wall Sean P. Asiala AAMS Michael C. Caley AAMS Pam Covington AAMS Tod Heisler AAMS 7525 West Jefferson Bld 030 Pointe Invemess Way, 4413 ois Rd Ste E 329 West Jetterson Bivd Fort Weyne IN 85804 110 Bon Rd Ste 10 Fort Wayne, I 48814 Font Wayre, IN 46814 Fort Wryne, IN 46854 399-5853 478-8038 Making Sense of Investing Making Sense of Investing Making Sense of Iinvesting Making Sense of InvestingMaking Sense of Investing 432-3613 747-5411 Making Sense of Investing Making Sense of Investing Making Sense of Investing