Tax-Free Muni Bonds Are Not Risk-Free
and given my tax bracket, I first chose to invest that money into bonds that would not result in additional federal income tax each year:I Bondson the inflation-indexed side and a Vanguard muni bond fund on the nominal side. Thus, I went from thinking...
A city might use the funds to finance things such as a new bridge or highway. The maturity of a muni bond typically ranges from one to 10 years. Interest payments from muni bonds aren’t subject to federal taxes. And if the bonds are issued by the state or city in which the investor...
Ageneral obligation bondmakes its repayments from the general funds of the municipal issuer; they're backed by thefull faith and creditof the issuer, which may increase taxes in order to meet its payment obligations. Arevenue bondis a municipal bond that is backed by the revenues generated fr...
#3 If you have saved enough to retire earlier than age 55, the chances of all your money being inside 401(k)s rounds to zero. You've surely got something like an inherited IRA, a 457(b), orRoth IRAcontributions that you can withdraw penalty-free. In fact, you've probably got a ...
Muni-Bond ETF Comes Up Short This type of underperformance isn’t just an issue for MUB, but for all of the muni-bond index funds. And these funds don’t even make up for their inferior performance with higher dividends: all of the muni-bond CEFs I’m about to show you yield around...
A 4.5% Tax Free Muni An example of business fixed investment spending is: a. A purchase of a computer by an accounting firm, b. A purchase of a home by a household, c. $200 million of unsold cars at a car dealers...
Before buying new international bond funds for retirement accounts, closely scrutinize holdings. Debbie CarlsonSept. 12, 2019 How to Choose Between Bonds vs. CDs Learn income investment basics to diversify your investments. Barbara FriedbergAug. 21, 2019 Muni Bonds Are A Good Investment Play Tax-f...
An investor who is in the 33% tax bracket is indifferent between a 9% tax-free muni and a 6% taxable bond. a. True b. False Internal financing is more costly than external financing because of issuance costs. a. True b. False Credit Default Swaps (CDSs) are essentially insurance poli...
The same thing goes for renters. Renters can now earn a higher risk-free income to offset their rent. So long as the increase in risk-free income is greater than their rent increase, renters are also winning. 5) Higher interest rates are great for limited partners in funds with lots of...