I own gmac bonds, a lot. Should I sell at .75/1.00? I need advice, I dont trust advisors that put me here?

A financial advisor recommended these bonds 5 years ago so I purchased $200,000 with all my savings! I have been following the ups and downs and keeping my fingers crossed along the way. Is now a good time to sell at .75 on the dollar and write off the loss. With this $$$ I can be debt free. Also my financial advisor is making this seem very hard to sell, this is my first and last bond purchase.I own gmac bonds, a lot. Should I sell at .75/1.00? I need advice, I dont trust advisors that put me here?
I cannot offer any specific advice to your situation, but I will say that the government guided bankruptcy of GM is a virtual certainty. How GMAC will be affected is a tricky, but the bonds that trade are trading below investment grade...if your specific investment plan does not include junk bonds or if this particular money is suppose to be allocated to investment grade corporates, you should stick to the plan (IOW get rid of these bonds).





In general, direct investment in non-US Treasury Bonds is not recommended for those with less than $1mm to invest in those assets. A mutual fund or EFT should be used for smaller amounts. Your advisor's choice violates this unwritten guideline and suggests his reasoning should be challenged.





Your loss is (part) of the reason small direct ownership of non-US Treasury Bonds is not recommended: lack of diversification results in mid-term losses most of the time and long term wipe-out in a rather high number of cases.

eyeshadow