Partial Redemption
What is Partial Redemption?
A partial redemption occurs when an investor withdraws some of a security's value.
How Does Partial Redemption Work?
Let's say John Doe owns $200,000 of Treasury securities. He decides he's having a mid-life crisis and wants to buy a red sportscar. To get the money, he partially redeems his Treasury investment by withdrawing $75,000 of Treasury notes in his portfolio account.
Why Does Partial Redemption Matter?
A partial redemption is a partial liquidation of an account. They may occur in order to lock in profits, pay liabilities, or divert assets to another investment.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.