j****o 发帖数: 269 | 1 type of Muni Bond, tax exampt, and yields anywhere from 3 to 4 percent.
anyone has experience? | m*********a 发帖数: 3299 | 2 It is a good investment given you live in the state of california and have
the highest federal tax rate and buy those bonds in a taxable account.
【在 j****o 的大作中提到】 : type of Muni Bond, tax exampt, and yields anywhere from 3 to 4 percent. : anyone has experience?
| j****o 发帖数: 269 | 3 so if I dont live in CA and am not in the highest tax bracket, it's not a
good investment? | N********n 发帖数: 8363 | 4 Dollar will probably depreciate 20% in the minimum every year for the
next decade, so that 3 to 4% rate is a joke.
【在 j****o 的大作中提到】 : type of Muni Bond, tax exampt, and yields anywhere from 3 to 4 percent. : anyone has experience?
| s********h 发帖数: 158 | 5 state and muni bonds are federal income tax free, and are state income tax
free in the state of issue but not elsewhere. 3-4% translates to 4-6% pre-
tax depending on your tax bracket, which is quite good compared to the
treasury or the CDs. there is a good article in today's wall street journal
on page c14 talking about ca munis.
what you need to do is to put some munis in excel, and run a few scenarios,
for instance, what if the interest rate goes up to 1-3% in the next 12, 24
or 36 months. as | m*********a 发帖数: 3299 | 6 It is not. If you are not rich, does not buy those nonsense bonds. Another
note, inflation is the only way to get out this current mess on toxic assets
, so Fed wants to inflate your money. Watch out inflation expectation
carefully. Buy high yield treasury at those high inflation eviroment. It may
be a once in a life opportunity. So be patient. | s********h 发帖数: 158 | 7 you are correct about buying high yield treasury when inflation spikes, but
let's run some numbers comparing putting your money into munis versus saving
it in a bank.
option 1 - buying muni bond
data for a typical muni bond: (from bloomberg)
your investment amount = $10,000
coupon rate = 4%, paid semi-annually
years to maturity = 5 (terms = 10)
coupon = 200 (i.e. 10,000 * 4% / 2 )
also assume that i hold this bond for 2 years, and the interest rate at the
end of 2 years goes to 2% (which is equa | c**m 发帖数: 103 | 8 RE
journal
,
out
【在 s********h 的大作中提到】 : state and muni bonds are federal income tax free, and are state income tax : free in the state of issue but not elsewhere. 3-4% translates to 4-6% pre- : tax depending on your tax bracket, which is quite good compared to the : treasury or the CDs. there is a good article in today's wall street journal : on page c14 talking about ca munis. : what you need to do is to put some munis in excel, and run a few scenarios, : for instance, what if the interest rate goes up to 1-3% in the next 12, 24 : or 36 months. as
| j****o 发帖数: 269 | 9 But you can get 2.01% from www.smartypig.com on your money. FDIC insured
but
saving
the
【在 s********h 的大作中提到】 : you are correct about buying high yield treasury when inflation spikes, but : let's run some numbers comparing putting your money into munis versus saving : it in a bank. : option 1 - buying muni bond : data for a typical muni bond: (from bloomberg) : your investment amount = $10,000 : coupon rate = 4%, paid semi-annually : years to maturity = 5 (terms = 10) : coupon = 200 (i.e. 10,000 * 4% / 2 ) : also assume that i hold this bond for 2 years, and the interest rate at the
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