Expert: Paul Henneman - 9/7/2004

Question
Hello:

I need advice on the following:

Is it wise to invest in Zero coupon bonds that have a maturity date of greater than 15 years, I am 40 years old.

I want to invest around $2000 /year on the above bonds.  

Answer
Solomon,
  Thank you for your question! Unfortunately my knowledge lies with the stock market and mutual funds. I have very limited knowledge regarding bonds. While I do have some basic opinions, I hesitate to offer you any advice as I don't think it would be of much value. My only general note is that I am generally against bonds, they are very safe but offer small returns when compared to other investment options. However, the risk is also much less, so perhaps I dismiss them too readily. I apologize that I could not be of more service!

Sincerely,
Paul Henneman
President
ValuEngine, Inc.
www.ValuEngine.com