Sentences with phrase «municipal bonds»
"Municipal bonds" are essentially loans that cities, counties, or local governments can take from the public to raise money for various projects. People can invest their money in these bonds, and in return, they receive regular interest payments and get their initial investment back when the bond matures. It's a way for governments to fund important initiatives like building schools, repairing roads, or improving public infrastructure. Full definition
Who would benefit from this book: If you want to get an introduction the the high yield municipal bond market, you will benefit from this book.
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They were just putting money away for retirement in municipal bond funds to diversify their portfolios.
Between them they spent billions of dollars investing in municipal bonds in one way or another since the turmoil in the credit markets began.
This means that you're able to buy $ 1,000 worth of municipal bonds for $ 950, $ 900, even $ 850.
I interviewed two financial advisors who are strengthening their core by using municipal bond indices and the ETFs that track them.
The best tax - free municipal bond funds should offer reasonable management fees and expenses that are comparable to similar products.
Interest income on municipal bonds issued in your state.
There is a vast number of municipal bond issues out there, from thousands of different issuers, and very few of them will change hands on any given day.
I like to have a portion of my dividends come from municipal bond funds.
Within your taxable account, you can hold tax - exempt investments, such as municipal bonds.
The tax exemption of municipal bond interest is a key draw for issuers.
Investment grade municipal bond yields have moved up and prices down two weeks in a row.
You may also be able to reduce the tax you owe on interest income by investing in tax - exempt municipal bond funds.
The liquidity available with municipal bond ETFs offers a compelling reason to emphasize ETFs over individual bonds in smaller accounts.
Many institutions woven into the fabric of daily life were made possible by municipal bond issuance.
Short - term municipal bonds issued by state and local governments (money - market mutual funds that invest exclusively in these pay tax - free earnings).
If you're risk averse and you're looking towards retirement, then it's highly recommended that you discuss zero - coupon municipal bonds with your financial advisor.
In a low yield and low expected return environment municipal bonds offer higher interest rate cash flow that is tax - exempt.
In addition, if you buy municipal bonds issued by the place where you live, those bonds are exempt from state and local income taxes as well.
But the tax changes will allow these companies to lower their tax liability on underwriting revenue while maintaining their low rates on investment income thanks to tax - free municipal bond income.
Another may only invest in riskier higher interest rate municipal bonds.
For example, suppose an investor purchases a 20 - year, zero - coupon municipal bond at an original issue at a price of 50.
Zero - coupon municipal bonds don't have to be taxed.
Selling prior to maturity can present a challenge for municipal bond investors due to the fragmented and thinly traded nature of the market.
By those criteria, 10 - to 30 - year municipal bonds yielding 4.5 % to 6 % before taxes would appear to be the safer buy.
There are many reasons to consider including municipal bonds as a core holding in your fixed - income portfolio, regardless of your tax bracket.
Some are tax - free or taxable municipal bonds, and others are investment - grade corporate bonds and government bonds.
These are attractive for tax purposes because municipal bond interest is exempt from federal taxes.
Banks and other financial institutions sell municipal bonds in denominations of $ 5,000 with no upper limit.
Government bonds generally consist of obligations of federal governmental entities, while municipal bonds are usually those of local governments.
You can invest in a variety of ETFs, stocks and mutual funds for growth, and tax - free investments like municipal bonds as you get older and need to draw income.
I knew generally what the bonds are and wanted to invest into municipal bonds in the past, but the high price needed to invest always discouraged me.
There are three different types of municipal bonds which can be issued by a state or local government.
Indeed, in some portfolios, e.g., high - grade municipal bonds held by individuals, almost no attention is paid to market prices.
Performance Comparison How has building a bond ladder compared to investing in a short - term municipal bond strategy?
This is particularly true in an era where municipal bond insurance is less prevalent, and as such credit analysis has more value.
I have been an active member of national associations of municipal bond issuers, investors, counsel and financial advisers.
You would have been better off putting your money into tax free, triple A rated, fully insured Municipal bonds with a yield of 5 - 6 %.
The primary benefit of purchasing municipal bonds is their tax - free status.
But when considering other fixed - income vehicles such as annuities or real estate, which both generate taxable portfolio interest, individual municipal bonds make a good alternative.
Some states tax interest income from out - of - state municipal bonds while others do not.
We continue our tax - time chart series with a look at how municipal bonds help manage against equity market volatility.
Although this powerful combination makes municipal bonds appealing, many investors find it challenging to navigate the large and fragmented municipal market.
If you're investing in a taxable account, you might also consider making a high - quality municipal bond fund part of your bond stake.
Municipal Bonds provide investors with a great combination of high yields and tax - free income.