Municipal Bond Forum
Looking for growth and income
Q
I’m a former retail stockbroker looking at a forced retirement. My last couple of years had no income tax but I have to take RMDs (required minimum distributions) in two years, so I’m looking at all avenues of growth and income. Since you own the bonds you sell, are your quoted prices the price paid or are there transaction costs added? If I sell a bond, do you handle that side of the transaction too, or can I sell it open market through another broker/dealer? Do you hold the security?
A
James A. Klotz responds:
As bond dealers we act as principals in our transactions and sell from our own inventory.
All prices are net to our clients. There are no additional fees or costs. Our bonds are marked to the market daily.
We will always provide bids for the securities we sell, but your bond sales can be handled by any broker you choose.
Our custodian bank is Bank of New York/Mellon but we will deliver bonds free to any financial institution of your choice.
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This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.