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Individual Muni Bond and ETF

Started by fwang, August 19, 2020, 09:38:26 AM

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Muni bonds are more expensive now compared to March.  Since Fed expects to keep the interest rate close to 0 for the next 2 years or so.  Are we expecting price of those bonds will drop? If not, is this a good time to buy individual bonds and/or funds that will mature in 3  to 4 years?

The benchmark I use is the ongoing CD and high yield savings rates which are almost at the historically low. 


If you can get a tax equivalent yield of about 3-4%, it might be good to get in on Munis. I've been looking into doing the same. Which State are you in and what are you currently looking at?

As you know, high yield savings accounts are now returning less than 1%. So there is not much out there that is safe and giving some kind of return. I have some cash sitting in pool bonds that return a fixed 5% but those have higher risk that munis.
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