Municipal Bond Forum
Off the bond ladder
Q
I just read your article on laddering and chuckled. I started investing in individual long-term muni bonds in 1988. I was advised to sell all of my long bonds and reinvest in short terms. I was also advised to ladder. But as your article brought out, I noticed that after 2000, rates were not increasing, so I continued buying when my income presented a surplus and when a bond was called. I now have many bonds paying a higher rate and yield because they were longer term. Your advice is good. Just buy when you have the extra cash, invest the longest term for your lifetime (or heirs) and buy good quality bonds.
A
James A. Klotz responds:
Thank you for your perspective.
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