Allan and Bill are suggesting it can't. Their argument is primarily that municipal pension funds are dangerously underfunded and that this could result in the default rate among states and municipalities rising dramatically. Since you want your bonds to be there for you in the worst of times, ...
How Safe? How Cheap? (cover story)This article discusses the financial positions of brokerage accounts relative to other investment products including money market accounts, Treasury bond funds, and municipal money market funds. These accounts are compared in terms of the relative level of investor ...
Municipal bonds Usually referred to as “munis,”municipal bondsare a type of government bond issued by state or local governments. The main advantage of munis andmuni fundsis that the returns they generate are exempt from federal taxes and, in some cases, from state and local taxes too. ...
Municipal bonds Usually referred to as “munis,”municipal bondsare a type of government bond issued by state or local governments. The main advantage of munis andmuni fundsis that the returns they generate are exempt from federal taxes and, in some cases, from state and local taxes too. ...
Mutual funds are often a cornerstone of long-term and retirement-focused investments. Click here to learn how to invest in mutual funds.
In an indexed fund or ETF the manager will seek to track the composition and performance of the underlying bond index. Here are some of the features and tradeoffs that might lead an investor to or away from bond funds. Control and transparency: Lower While you have control over what fund ...
Municipal bonds are considered relatively safe investments, as the issuing government entity with low default risk backs them. Buying a municipal bond essentially exempts you from paying taxes, as the total amount of your original investment plus interest is repaid once the bond reaches its maturity...
Paul asks about precious metal funds and municipal bond funds too. These are very different investments compared to the CD as well. Precious metal funds are speculative and very aggressive investments. Bond funds on the other hand are typically much more conservative but still more risky than CDs...
Most bond funds will hold either corporate bonds issued by businesses ormunicipal bonds(munis), which are issued by states, cities, and localities to raise money. Be sure you know what type of bond fund you are buying before you invest. How to Buy Government Bonds Purchasinggovernment bondssu...
Bond funds, meanwhile, are investment vehicles like mutual funds or bond ETFs that pool funds from a large number of investors to buy a diversified portfolio of bonds.7This provides the means for greater diversification and professional management but has ongoing fees. The choice between individual ...