Are You Missing Out On Municipal Bond Market Value?

municipal-bond-1

A lot of people I have talked with recently are suggesting that if an investor is looking for more (after tax) yield these days that it might be a good idea to look at the bonds issued by state and local governments. States, cities, counties … [Read more...]

Accrued Market Discount – What You Need to Know

accrued-market

In last week’s article, “10 Intermediate-Term Bonds Yielding Over 4%,” I presented 10 corporate bonds with yields-to-worst and current yields of at least 4%, maturities of less than 10 years, and credit ratings no lower than Ba3/BB-. Moreover, nine … [Read more...]

What Tax Rate Is Applicable to Your Investment Decision?

tax-rate

There is disagreement as to which income tax rate should be applied when deciding whether to purchase, for instance, a municipal bond or a corporate bond. Some people say that you should use the tax rate for your last dollar of taxable income―the … [Read more...]

Fed Funds Rates vs. Bond Mutual Funds

fed-reserve

The sky is falling! Well at least it appears to be in the bond markets. I guess we cannot refer to this as a “Great Rotation” being that stocks have been getting hit pretty hard with the Fed’s recent decision to announce that an end of their stimulus … [Read more...]

HYD: Here’s How To Calculate Your True Taxable-Equivalent Yield

balancing-stones

In Monday’s article, “HYD: A Rare Opportunity In This Municipal Bond ETF,” I noted the significant discount to its net asset value at which HYD was trading, and I outlined several key features of the fund. On Monday morning, the discount to NAV … [Read more...]

Are municipalities gambling with taxpayer money or being smart?

interest rate swaps

A recent article by Bloomberg, “Rigged Libor Hit States-Localities With $6 Billion” made it sound like Municipalities made bad financial bets. Municipalities bought around $500 billion of interest rate swaps prior to the beginning of the financial … [Read more...]

9 Ways to Minimize Taxes on Investments and Beat the IRS at Their Own Game

Investment Tax Minimization

Investors who do not manage investments in a tax sensitive manner unnecessarily give up between 1 and 2 % of their annual returns to taxes, according to Morningstar.  Here are 9 ways to minimize taxes on your investments and kick your retirement … [Read more...]