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[quote=Anonymous]Here's the thing.  Generally higher risk investments carry the potential for higher returns, while safer investments have lower returns.

It seems unlikely New York will default on its bonds, so you have a pretty safe investment that is paying over 5%, at a time when other safe investments may be paying 1% or less.

You could decide that you are confident you don't need this money in the short term, and that over the long term investing in the stock market will net you better returns (than 5.6%). In that case, I think it would make sense to sell the bond and invest the proceeds.

Or, you might decide that you want part of your portfolio in more safe and stable investments, and if you can get 5.6% on those assets right now you are ahead of the game.

You need to think about how to divide up your investments among different classes of assets.  Very young people might want to be 100% in stocks, but I think most people want to have at least some investments in bonds.[/quote]

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