For bond or bond fund investors, rising interest rates can result in losses on their bond holdings. Rising rates result in falling bond prices. When interest rates start to increase, income investors need a plan to protect their capital values and put money to work earning the new, higher rates. Before 2010, the last period of rate increases was 2004 to 2006. During that time, the federal funds rate increased by 4.25 percent in 25 months.

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For a Portfolio Holding Individual Bonds

Review your bond portfolio for the distribution of maturities. Rising rates are a problem for long-term bonds, so focus on the number of bonds with maturities greater than five to seven years.

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