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Want to Beat Boring CDs? Munis Can Be a Conservative Way to Increase Yield
Want to Beat Boring CDs? Munis Can Be a Conservative Way to Increase Yield Municipal bonds come with some risks that bank CDs don't, but there are ways to minimize them while still getting a better return. Plus, the interest you earn is tax free, and who doesn't love that?
Some Munis can be a conservative way to increase yield, but you always have to balance yield, with total return, with tax implications. Many Munis are very risky from both an interest rate risk and credit risk, so as usual, it is somewhat difficult to generalize about how conservative the entire category of Munis is.
"And over 90% of these bonds are AAA, AA, or A rated."
After watching "The Big Short", I say bulls***. IF you just said it is fund from Vanguard, duration approx 5 years and diversified with 9000 bonds, you had me. Then you add that sentence,...
"The Big Short" did indeed expose a big pile of "bulls***." Quite right. It was literally a broken, fraudulent System, then. Is it, still? Maybe it's a matter of degree?
Comments
"And over 90% of these bonds are AAA, AA, or A rated."
After watching "The Big Short", I say bulls***. IF you just said it is fund from Vanguard, duration approx 5 years and diversified with 9000 bonds, you had me. Then you add that sentence,...
Vanguard Prime Money Market. Fin.