Municipal Bond Forum
Unhappy in stocks
Q
I receive about $7,000 annually in dividends from stocks. I need this income, but the tax is killing me. Are there municipal bonds that pay a regular interest/dividend that are tax free? Should I consider selling some of my stocks to purchase them? I’m 61 and want to get more security but don’t necessarily want to sell stocks as a panic move. Should I consider mutual funds? My financial planner seems determined to keep me in stocks. My immediate priority is generating income from investments while reducing federal and state taxes.
A
James A. Klotz responds:
We don’t want to upset your investment advisor, but we can assure you that investors who have received their income from municipal bonds for the past 20 years are much happier than those who invested in stocks. If your objective is to produce income, bonds are generally considered the appropriate vehicle, while stocks are usually selected for growth.
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