you have to pay your taxes whether you re-invest in stocks, bonds or groceries.
You can invest the interest from bonds in anything you want. After you pay taxes on it.
Yes, of course.
Unless you wrap the investments in a tax efficient vehicle then you may have a tax liaBILITY
For my investment portfolio, I'm wondering if I can take my fixed income from my bonds and bond etfs and invest those in my index funds when the market is in a recession period. This way, I can capitalize when the market does recover.
However, I'm not sure that this is feasible - if there are taxes I may have to pay that make this method impractical.