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Munis not just for millionaires

johnNjohnN
in Fund Discussions
https://www.fa-mag.com/news/munis--not-just-for-millionaires-54421.html

Munis, Not Just For Millionaires
MARCH 3, 2020 • DANIEL RABASCO
Municipal bonds (commonly known as “munis”) are debt securities issued by state and local governments, and their agencies and authorities, to fund projects ranging from hospitals and schools to highways and bridges. Munis have been widely viewed as being primarily attractive to investors in high income tax brackets as the interest payments received from the bonds are typically exempt from federal and, in some cases, state and local taxes. But munis—which in 2018 constituted about $3.8 trillion in total assets with 54,000 issuers and one million securities—aren’t strictly for the affluent.

Comments

  • CrashCrash
    edited March 2020
    I just looked, for fun. I have three dedicated bond funds, and one balanced fund. Only one has a significant amount of munis (PTIAX) --- and that fund is surely owning munis by way of its sister-fund, in Performance Trust. That other one is a dedicated MUNI fund. RPSIX owns 0.03% in munis. (Morningstar's listed portfolio.) And everyone's darling, PRWCX? ZERO in munis. The fund manager has put his bet on dividend-paying utilities. It's a good long-term bet: Wind, solar. Sustainable.
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