Municipal Bond Forum

Buying right

Q

I’m 65 and I want to move some of my portfolio into bonds. How do I guarantee the lowest possible commission on the purchase and sale of bonds?

T.D., Florida

A

James A. Klotz responds:

We agree that commissions shouldn’t be excessive, but seeking the lowest possible commission rate probably shouldn’t be your main priority. We think it is considerably more prudent to focus on the best securities to own, rather than what it cost to buy them.

Unlike shares of a particular stock, municipal bonds are not all created equal. If you end up with the wrong bonds or bond funds, it wouldn’t matter what the commission was.

You don’t want to find out at age 75 that you were penny wise and pound foolish.

Aug 16, 2012

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