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I get my exposure to Munis at USAA with USTEX and USBLX in my taxable accounts. The first, USTEX, holds strictly Long Term munis and its NAV is at a 52 week high. The second, USBLX, provides a monthly tax exempt distributions but also holds 30-40% growth stocks (mostly LC) for long term capital appreciation. I like both in my taxable account.
Hi bee, happy monday I still kept the same individual muni portfolio, no changes. I think the biggest concerns are raising capital gains taxations next year. I suspect interest rate won't be raised until 2014 or 2015, which is a nice environment for Munis/bonds. Otherwise if you put $$ in munis better returns and CDs, but slightly higher risks; you have to choose your own best ones. For instance I've bought SJ arpt muni bond [cusip 798136TS6] few weeks back, ratings AA and yielding ~ in the 5.5%s tax free, can't really get a better deal out there. The problem is I don't know if I will live until 2031 when the bond mature
I think you may need a mixture of muni etfs/bond funds + some individual bonds in your portfolio because you cannot control what the managers do w/ the ETF/funds+ NAV; you don't really care what the market does w/ individual bond [just hold it until it mature and let's not hope it won't bankrupt till then].
Comments
I get my exposure to Munis at USAA with USTEX and USBLX in my taxable accounts. The first, USTEX, holds strictly Long Term munis and its NAV is at a 52 week high. The second, USBLX, provides a monthly tax exempt distributions but also holds 30-40% growth stocks (mostly LC) for long term capital appreciation. I like both in my taxable account.
The comment section of your linked article offered this screener for those interested in CEF:
http://www.cefconnect.com/Screener/FundScreener.aspx
Also mentioned in the comment section is the fact that proposed tax changes maybe one reason that there is still a net increase into munis.
Raising Interest rates and bankruptcy are two dynamics to monitor in this investment space.
Would love to hear from others who utilize munis
I still kept the same individual muni portfolio, no changes. I think the biggest concerns are raising capital gains taxations next year. I suspect interest rate won't be raised until 2014 or 2015, which is a nice environment for Munis/bonds. Otherwise if you put $$ in munis better returns and CDs, but slightly higher risks; you have to choose your own best ones. For instance I've bought SJ arpt muni bond [cusip 798136TS6] few weeks back, ratings AA and yielding ~ in the 5.5%s tax free, can't really get a better deal out there. The problem is I don't know if I will live until 2031 when the bond mature
I think you may need a mixture of muni etfs/bond funds + some individual bonds in your portfolio because you cannot control what the managers do w/ the ETF/funds+ NAV; you don't really care what the market does w/ individual bond [just hold it until it mature and let's not hope it won't bankrupt till then].
http://www.dentonrc.com/business-tech/denton-business-headlines/20120729-scott-burns-lazy-portfolios-beat-professionally-managed-ones.ece
GNM funds
http://www.washingtonpost.com/business/ginnie-mae-bonds-5-key-considerations-for-mutual-fund-investors-seeking-safety-and-yield/2012/07/26/gJQAaijFCX_story.html