Category: Municipal Bonds

What is a Bear Market?

If you're reconsidering your current investment strategy, a volatile market is probably the worst time to turn your portfolio inside out. Dramatic price swings can magnify the impact of a wholesale restructuring if the timing of that move is a little off....
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Portfolio Performance

Assessing Portfolio Performance: Choose Your Benchmarks Wisely You can’t help but hear about the frequent ups and downs of the Dow Jones Industrial Average or the S&P 500 index. The performance of both major indexes is widely reported and analyzed in detail by financial news outlets around the nation....
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Getting Help from a Financial Professional

Are you suddenly on your own or forced to assume greater responsibility for your financial future? Unsure about whether you’re on the right track with your savings and investments? Finding yourself with new responsibilities, such as the care of a child or an aging parent? Facing other life events,...
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Municipal Bonds and Tax Planning

Even though the interest from municipal bonds is generally exempt from federal income tax, there are other tax issues you need to keep in mind when considering whether to purchase a muni. Only interest is tax exempt A bond’s tax-exempt status applies only to the interest paid on the...
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Evaluating a Municipal Bond

When choosing investments, many bond investors focus only on yield and the creditworthiness of the borrower. However, there are many other factors to consider when deciding whether and how to invest in municipal bonds. Hold to maturity or trade? If you hold a bond until it matures and the...
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Munis Credit

 Bond Credit Quality Ratings S&P Moody’s Fitch INVESTMENT GRADE Highest quality; minimal credit risk AAA Aaa AAA High quality; very low credit risk AA Aa AA Good quality; low credit risk A A A Moderate credit risk; may be vulnerable to changes in economic conditions BBB Baa BBB NOT...
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Tax Brackets

Federal Tax Bracket   15%  25%  28%  33%  35% Taxable yield Equivalent Tax-Free Yield 2% 1.70 1.50 1.44 1.34 1.30 2.5% 2.13 1.88 1.80 1.68 1.63 3% 2.55 2.25 2.16 2.01 1.95 3.5% 2.98 2.63 2.52 2.35 2.28 4% 3.40 3.00 2.88 2.68 2.60 4.5% 3.83 3.38 3.24 3.02 2.93...
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Municipal Bonds and Their Tax Advantages

State and local governments often borrow money to supplement tax revenues and to finance projects such as new highways, buildings, or public works improvements. Such bonds are known as municipal bonds (“munis”) or tax-exempt bonds. Most municipal bonds and short-term notes are issued in denominations of $5,000 or multiples...
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