Municipal Bond Forum
Looking for safety over five to 10 years
Q
Assume that you are 70, retired, have more than $1 million in liquid assets and would like a fairly safe return over the next five to 10 years. What are your top candidates to buy now or keep on watch? I am not requesting a recommendation on a specific bond.
A
James A. Klotz responds:
In today’s municipal bond market, an investor can purchase short-term (10 years or less) securities that provide solid quality and attractive returns.
If you are seeking the ultimate in safety, you might consider pre-refunded munis, which are escrowed in U.S. Treasury bonds.
Many pre-refunded bonds can be purchased today with higher tax-free yields than the taxable yields on Treasury certificates of comparable maturity.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
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.