GDA wrote:
- quote -

$600 per month is about 6%, which is OK. If they are truly invested in
bonds,
and if they are truly getting interest payments, then I think you are
confused
about what they have (they 'had' $130k and now 'have' $121k):

If they bought bonds, the typical bond will pay a fixed interest rate
over it's
life, and then you get back your original principal. No money is ever
lost
as such. Now over these years, the value of any of these bonds may
fluctuate, but this is just the value *if you were to sell the bond(s)
right now*.
These values change because as interest rates change the new bonds
that come out may offer more or less interest, so if you sold yours it
might
be more or less attractive so you'd get more or less than you paid.
Over
the last year interest rates have gone up, so existing bond values have
gone down, but it should be no concern if they are held till maturity.
The
fact that my $5 deli sandwich goes down precipitatively in value after
I've
taken only one bite doesn't trouble me because I'm going to eat it all,
and
get my $5's worth.

So as long as your parents are getting sufficient interest, have them
simply
keep them till maturity and then buy what's best at that time with the
returned
principal.

Don't be tempted by higher interest investments without understanding
the
added risk that will necessarily be there, as well as expenses and
hidden
fees. For instance if your broker sells your bonds, he may make a
'principal
trade', which will show you zero commission on the advice, but he may
have
quietly pocketed several percent of your money.
The best way to buy bonds is initial offerings, where the seller
pays the
commission. Note that annuities don't give you your capital back...
Joe

GDA wrote:
- quote -

An immediate annuity would pay about $700/month as long as either one
is still alive, assuming they are both aged 65 now. More if they are
older, less if younger.

John Cowart

My parents have 121,000 invested in bonds and they get a monthly interest
check of approximately 600.00. But they started out with 130,000 last
year. Is there anything else they can invest their money in and get a
monthly interest check.