Interest rates vary through time. The bonds we buy for clients have very good credit quality and typically yield more than U.S. Treasuries but less than riskier bonds which are considered to have higher default risk.

Sometimes. It depends on prevailing interest rates. We always have access to money market funds and other cash management vehicles that can earn you more on your cash than a bank account would typically pay you.

Usually not. We select your bonds carefully, considering interest rates, credit quality, and tax consequences. Once we buy a bond, we expect to own it to maturity, at which point we can reinvest any proceeds that are in excess of the cash you need to support your lifestyle.

We diversify portfolios by both term and by issuer, but we generally do not buy long term bonds due to the inherent interest rate risk. Portfolios typically include bonds of short and medium terms.