Municipal Bond Forum
You’re never too old to maximize your income
Q
I am 55 years old, so buying a bond that matures in 34 years seems silly. Could I sell a bond like that in, say, 10 years?
A
James A. Klotz responds:
Yes, there is an active market for municipal bonds. Bonds can always be sold prior to maturity. Prices, however, will be contingent on market conditions and the interest rate environment at that time.
But why is your age meaningful? After taking quality into consideration, we recommend maximizing your income by continuing to buy long-term bonds as your investment dollars become available. Of course, sometimes your bonds are worth more than you paid for them, and sometimes less, but your tax-free income – the main reason investors of any age buy munis – remains constant.
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.