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How can one invest in municipal bond funds?
To invest in municipal bond funds, you can open an account with a brokerage firm or mutual fund company that offers these funds. Choose a fund that aligns with your investment goals and risk tolerance. Then, you can invest by purchasing shares of the fund either directly through the company or through a broker.
What are the best bond funds available?
Which bond fund is the best depends on one's expectations and investment objectives. Some highly rated bond funds are the GMO Core Plus Fund, Wells Fargo CoreBuilder, and DoubleLine Total Return Fund.
Why should one consider getting a bond fund?
There are a few different reasons one should consider getting a bond fund. A bond fund is issued by the government in order to help bolster the economy. They can only grow in value and it is a great way to make some money in a safer way than stocks.
Where can one learn about international bond funds?
Several companies offer funds that invest in international bonds. One could visit the Invesco Perpetual website and read up on their Global Bond Fund, or visit the Barings website and read about their International Bond Fund.
Why would one need debt securities?
Most debt securities are traded electronically. Debt securities are usually in the form of bonds. They can be a government sponsored bond, corporate bond, or a municipal bond.
What can one do with a mutual fund screener?
One can view a wide variety of collection of stocks, bonds or other investments with a mutual fund screener. This is the simplest and less expensive way to access wide variety of the stock and bond markets.
Is there an orphans fund in Ontario Canada?
If one of your parents has died, you are eligible to receive about $220/month if you are a student under 25.
Municipal Bond and Full Faith?
A municipal bond is issued by a government, city, or other agency. There are many potential issuers of a municipal bond. School districts, public utilities, counties, redevelopment agencies, and other organizations can issue these bonds. The municipal bond can be specified revenues or general obligations of the issuer. Additionally, the interest income that is received from these bonds is usually tax exempt from federal and state taxes. Furthermore, there are different types of municipal bonds. The municipal bond can also be called a municipal security. The short-term issues mature in one year or less. The bonds that take longer to mature are called long-term issues. The general purpose of short-term issues is to raise money for a particular purpose. Many times these bonds are used to raise money in anticipation of taxes, state or other federal aid payments, and future bond issuances. During hard times, this revenue can be used to cover deficits that are unexpected, or the monies can be used to cover irregular cash flow. In cases where long term financing can not be secured quickly, the municipal bond can raise revenue to finance the project. There are two main type of municipal bonds. First, the general obligation bond is secured by the full faith of the issuer. The purchaser has confidence that the principle and interest will be repaid by the issuer. This issuer generally has the power to tax the public, and this ability can be limited or unlimited. Second, the revenue bonds are funded by direct revenues from tolls, rents, or charges. Many public projects are financed by revenue bonds. Airports, bridges, toll bridges, waste and sewer projects, and many more things are the result of financing from revenue bonds. The municipal bond in these cases are directly issued by a special authority. Furthermore, a municipal bond is usually issued in certain denominations. The minimum denomination is $5,000. The bonds also bear interest at a fixed or variable rate. The issuer receives the cash up front, and the issuer must give a promise to repay the principle and interest of the municipal bond. Repayment periods can be as short as a few weeks, or the repayment period can be long term. In some cases, the municipal bond may not be paid back until 40 years later.
How To Determine If You're Better Off With A Taxable Or Tax-Free Bond Fund?
When choosing a bond fund for your investment portfolio, there are two very broad categories to choose from - taxable bond funds that hold mostly corporate and government securities and tax-free bond funds that hold mostly municipal bonds. The average investor might be enticed by the tax-free bond fund mainly because of the words "tax-free". Who wants to pay taxes to the government if they don't have to, right? But there are definitely cases when they will not make sense. The best way to determine if a tax-free bond fund makes sense is to calculate it's taxable equivalent yield. (This is assuming that a taxable and tax-free bond fund are substantially the same investment. In reality, there are credit quality and other issues that need to be judged in addition to the yield offered before making a final investment decision.) In order to calculate the taxable equivalent yield, you'll need the tax-free yield and your current tax bracket (which can be found from your tax return, the IRS or any number of financial websites). Take the tax-free yield and divided it by one minus your tax bracket. For example, if you're in the 31% tax bracket and you can obtain a 4% tax-free yield, the taxable equivalent yield will be 5.8% (4 divided by .69). In other words, you would need to obtain a taxable yield of at least 5.8% in order to "outyield" the tax-free investment. This is why municipal bond and other tax-free funds are considered to be better suited for those in higher tax brackets. A muni fund allows a high income investor to avoid a greater level of taxes than a low income investor. It's a simple calculation but it can go a long way to point you towards the right investment.
What did Brutus ask Cassius for that he did not receive?
Money to fund his army. Cassius claimed that the money did not arrive due to a misunderstanding with one of his messengers.
What is a bond mutual fund?
A Bond mutual fund is one that invests predominantly in bonds and fixed income products. It does not invest in stock market instruments and hence is much more safer than them. But since it invests in fixed income products like bonds the returns are also less than 10% per year.
How can I learn about the muni bond market?
Municipal bonds are a little more complex than other bonds. You can find out more information about getting one, and the benefits by going to the Investopedia website.
