Sentences with phrase «muni bond interest»

Does the capital appreciation of a dividend - paying stock offset the tax - free treatment of muni bond interest?

Maybe my wife and I are lucky to have pensions, 401Ks, muni bond interest that provides passive income 3x our expenses at age 52.

Therefore, paying zero state income and federal income tax on muni bond interest income is very enticing.

Not exact matches

It will be interesting to see how existing muni bonds default on their agreed upon interest rates.

What I find most interesting is that, although investors are increasingly moving capital from actively - managed equity funds to ETFs, they still prefer actively - managed muni bond funds.

The stars aligned in spectacular fashion for the municipal bond market in 2014: Low supply amid solid demand, improving fiscal conditions among state and local issuers, and a broad drop in interest rates (and rise in bond prices) helped make munis one of the top - performing fixed income asset classes of the year.

I would never recommend buying a bond fund (muni or other) with interest rates where they are.

Oh, and that USA friend of mine — she has a municipal bond portfolio where she a) is earning over 4 % on average, and b) pays NO TAXES on the interest income whatsoever (munis are exempt).

Interest paid on municipal bonds (also called «munis») is generally free from federal — and sometimes state and local — income taxes.

For example, you can buy a muni bond in California to earn interest tax free, however if you are required to pay «Alternative Minimum Tax» these may not be tax free.

The tradeoff is that interest rates and yields are typically lower for muni bonds by comparison.

Notably, interest received from munis is generally exempt from federal and, in many cases, may be exempt from state, and local income taxes, assuming the investor purchases bonds issued by his or her home state.

Short - term muni bond investment strategies typically have the shortest duration targets and the lowest interest rate risk.

Interest income from these bonds is not subject to federal income taxes, and if you live in the muni's issuing state, the bond's interest income is also exempt from state and locaInterest income from these bonds is not subject to federal income taxes, and if you live in the muni's issuing state, the bond's interest income is also exempt from state and locainterest income is also exempt from state and local taxes.

Although these bonds offer a lower interest rate than corporate bonds, because of tax - exempt advantages, munis could bring in an after - tax return higher than a corporate bond.

Municipal Bond Interest Exclusion: Interest paid on munis isn't taxed by the Feds.

The fund invests in California muni bonds, and since I live in California that means that all interest from the fund is tax - free.

High - yield municipal bonds have generally provided less interest - rate sensitivity and higher income relative to higher - quality muni bonds.

I've broken out interest income (which is fully taxable at our marginal tax rate) from our tax - free interest (from CA muni bond mutual funds).

It would be nice to invest in muni - bonds and live off interest during retirement, but you need a whole lot of money to do that.

In general, the interest paid on municipal bonds is exempt from federal taxes and sometimes state and local taxes as well.1 The higher your tax bracket, the more you might benefit from investing in munis.

If munis will give you a higher tax - equivalent yield, you might be tempted to purchase a muni fund that focuses on bonds from your state, so the interest is exempt from state as well as federal taxes.

Also, single - state muni funds often own relatively long - term bonds, so they could get hit hard by rising interest rates.

The taxable bonds should have a higher yield than tax - free munis and, because you're buying them in a retirement account, you don't have to worry about paying tax each year on the interest generated.

The two funds are where I invest the interest from the CDs and muni bonds.

«Muni Bonds Headed for a Rough Patch, Higher Interest Rates, Surge in Issuance Pressure Prices.»

January is typically a strong month for the municipal bond market, but 2018 began with the worst January performance since 1981, driven by rising interest rates and uncertainty over changes in the Tax Cuts and Jobs Act (TCJA).1 The muni market stabilized through late April 2018, but uncertainty remains.2 The tax law changed the playing field for these investments, with a mix of factors that could affect supply and demand.

Lord Abbett's new Muni - Ladder Interest Rate Scenario Tool enables you to create sample laddered municipal bond portfolios and see how they would perform in different rising - interest - rate envirInterest Rate Scenario Tool enables you to create sample laddered municipal bond portfolios and see how they would perform in different rising - interest - rate envirinterest - rate environments.

Munis are considered less risky than corporate bonds and less sensitive to changing interest rates than Treasuries, making them an appealing middle ground for many investors.

Bond fund investors in the top tax brackets will often get a higher yield from funds that purchase muni offerings that pay tax - free interest.