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Started By
Message
Procedures for cashing out 20YR bond early? Even possible?
Posted on 10/9/12 at 9:34 am
Posted on 10/9/12 at 9:34 am
Got some money to invest from parents. Invested in 20 year road bonds. Parents asking for it back after 4 years. Can I even access funds? If so, what sort of penalty am I looking at?
2
Posted on 10/9/12 at 10:37 am to Rouge
Rouge,
I am your right handed compadre from STM. Was your bond a municpal road bond, state road bond, a little more information is needed to answer the question.
ETA: Without knowing how much we are talking here, do you have more liquid money you could use to repay parents if cashing in bonds would significantly hurt you financially?
I am your right handed compadre from STM. Was your bond a municpal road bond, state road bond, a little more information is needed to answer the question.
ETA: Without knowing how much we are talking here, do you have more liquid money you could use to repay parents if cashing in bonds would significantly hurt you financially?
This post was edited on 10/9/12 at 10:39 am
Posted on 10/9/12 at 10:42 am to ThatsAFactJack
it's a municipal road bond. Harris County, TX
we're talking about $20,000
method of extraction really doesn't bother me. i knew this was a potential option, but i wasn't expecting it so soon. trying to handle in most fiscal way possible for my mom and myself.
for clarification, compadre from 1996 or 1997?
we're talking about $20,000
method of extraction really doesn't bother me. i knew this was a potential option, but i wasn't expecting it so soon. trying to handle in most fiscal way possible for my mom and myself.
for clarification, compadre from 1996 or 1997?
This post was edited on 10/9/12 at 10:49 am
Posted on 10/9/12 at 10:56 am to Rouge
1997
Did you buy your bond thru a broker? If so you can sell your holding based on the current market and possibly have a capital gains tax. If your bond is not thru a broker you would need to contact the municipality or trustee directly and their would be tax implications (i.e. early withdrawal penalties)
Full Disclosure: I am not a broker but am highly involved in various bond projects we have done to finance hospital expansion.
Did you buy your bond thru a broker? If so you can sell your holding based on the current market and possibly have a capital gains tax. If your bond is not thru a broker you would need to contact the municipality or trustee directly and their would be tax implications (i.e. early withdrawal penalties)
Full Disclosure: I am not a broker but am highly involved in various bond projects we have done to finance hospital expansion.
This post was edited on 10/9/12 at 11:04 am
Posted on 10/9/12 at 11:03 am to ThatsAFactJack
Good information to proceed. Much appreciated.
Will be driving through on Friday from Dallas to hit the LSU game this weekend. Perhaps we can meet up Friday or Sunday. Only email I have for you is hotmail.
Will be driving through on Friday from Dallas to hit the LSU game this weekend. Perhaps we can meet up Friday or Sunday. Only email I have for you is hotmail.
Posted on 10/9/12 at 11:30 am to Rouge
Yes that is my hotmail. I will be out of town this weekend. Going with Brother In Law, we are taking our daughters out to the deer lease for their first trip. Have no expectations of actually killing a deer (bow hunting), but do expect to play with elmo/dora in the stand. Haha.
Have a safe trip.
Have a safe trip.
This post was edited on 10/9/12 at 1:44 pm
Posted on 10/9/12 at 1:20 pm to ThatsAFactJack
Can't you sell the bond? You will probably profit from it if you bought it four years ago as bond rates are in the dumpster. Bond rates go down, prices go up.
Not talking very much profit on $20k, but you should be able to sell the bond on the open market somewhere?
Not talking very much profit on $20k, but you should be able to sell the bond on the open market somewhere?
Posted on 10/16/12 at 2:14 pm to Rouge
quote:
Posted byMessage
Rouge
Were you able to get your investment back? Shoot me an email if you don't want to air the details on here. Interested to know the outcome without the dirty details.
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