Municipal Bond Forum
A Long-Term Investment
Q
What if we invest in California municipal bonds and find that we have to withdraw some or all the funds? Is there a penalty?
A
James A. Klotz responds:
Although municipal bonds are a liquid investment and can be sold at any time, the price you receive will be based on market conditions at that time. In other words, your bonds may be worth more than you paid for them, or less than you paid for them.
If you think you will have a need for your funds in the near future, bonds are not for you.You probably want to consider short-term CDs (taxable) or a tax-free money market.
Start here.
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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.