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There is no strategy to speak of. Municipal bonds are a low-yield, long-term sure investment, all characteristics of a safe investment.
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∙ 14y ago
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Should municipal bond trading be part of my financial portfolio?
Municipal Bonds Have a Place in My Portfolio... on municipal bonds, which had historically been a lower-risk part of the investment arena to do good.
What are the pros and cons of municipal bonds?
You can read about the pros and cons of municipal bonds at www.100besteverything.com › Best Personal Finance. Another good site is www.ehow.com › Personal Finance › Investing › Bonds
Are municipal bonds good for making money?
No it is not a good idea. Many people do not find Municipal bonds to be a great investment if you do not have extra money to apply to them. So I would go with another bond.
Are municipal bonds a sound form of investing?
Municipal offer a very safe investment for a marginal return,this is considered a good investment.
What is a good website for someone who wants to follow municipal bonds market?
I find www.investinginbonds.com very good.
Do Muni Bonds have a good rate of return?
Municipal bonds can have a good rate of return. They can also have high capital gain taxes. Letting these bonds grow to maturity can ensure maximum returns.
What type of professional would be good to talk for advice on tax free municipal bonds?
Tax specialists would be the professionals with the most information about tax free municipal bonds. Financial planners, auditors and accounts may have information as well.
wHA ARE tAXABLE mUNICIPAL bONDS Are they suitable for IRA investments. Why are they issued compared to Tax Exempt Municipal Bonds?
Taxable municipal bonds are bonds issued by governments (municipal bonds) that are NON-tax exempt (most munis are.) They are often better for IRA investments than tax-exempt bonds because they tend to pay higher interest rates and IRAs are tax exempt anyway. They are issued for a variety of reasons (often, they don't count against a bond issuers' cap) but, in part, because they are a good investment vehicle for IRAs and other tax exempt accounts.
Of the taxable and tax exempt formats, which municipal bond trading has the least risk involved.?
General obligation bonds and revenue bonds are both types of municipal bond trading bonds. They both are fairly low-risk because they have a good payout in general. However, the trader does have to worry about marketplace interest increases and tax-bracket changes.
How do municipal bonds and mutual funds compare for investors?
Municipal bonds are considered safer so long as you make sure the city is in solid fiancial order. The risks should be quite small, but they're not going to outperform a good mutual fund so long as the economy is sound. Municipal bonds are safer and lower risk because it is a set interest rate. Mutual funds have an interest rate that varies with the stock market.
Tax Free Municipal Bonds Are More Secure Than Other Investments?
When you are looking for a low risk, long term type of investment municipal bonds is the first place you should investigate. Tax free municipal bonds are bonds issued by local and state governments and their associated entities. These bonds guarantee the return of your investment in a specified number of years along with interest. These bonds have an additional bonus attached to them. The profits you make from the money are tax free. The IRS has instituted this policy in an effort to have investors place their money into government programs. These bonds are issued so government authorities can pursue local infrastructure projects. When you invest in tax free municipal bonds the interest rate you make will be slightly lower than on corporate bonds. This should not be a deterrent. The tax free status of the bonds more than compensates for the lower interest rate. Profits made from corporate bonds carry a high tax burden. This type of investment is considered a long term investment. Municipal bonds generally carry a 20 – 40 year return rate on their purchase. Some bonds may be short term, but these are hard to find. Municipal bonds can be purchased directly from the organization issuing the bonds at the initial offering or through a bonds broker. Government regulations require that the agency issuing the bonds begin the intended project within 5 years of issuing the bonds. If, for some reason, this deadline cannot be met, the agency will return your investment plus interest. At that time they may issue another bond offering. Diversifying your investment portfolio is critical to its success. You should never place all your investments into one type of stock or bond or place all your money into one risk factor. You must, as a responsible investor, diversify your portfolio with low and high risk investments to ensure a good outcome. Municipal bonds are a great way to add a long term low risk balance to your portfolio.
Are U.S. Treasury bonds a good low cost investment?
US treasury bonds are guaranteed investments. The amount you have to invest has no bearing on the return percentage. They are however only available in certain denominations.
