1-800-367-2663
1-800-367-2663
To participate, just send us an e-mail. Be sure to include your name or initials and your state of residence. Posted e-mails may be edited for length and clarity. If you prefer a private response, please note that in your e-mail. Responses are provided by James A. Klotz, president and co-founder of FMSbonds, Inc., a municipal bond specialist for more than 35 years, and other members of the firm as noted.
Postings are listed by date. If you have any questions, please call us at 1-800-FMS-BOND (1-800-367-2663) or e-mail us.
Regarding your article, “Munis Spared from ‘Fiscal Cliff’ Deal“: You know, sometimes it pays to not gloat and leave gift horses unexamined! You are writing to the choir and the unevenly blessed and perhaps not deserving of the largesse we enjoy. Maybe if you spoke more of “put back” or “share,” the backlash won’t be as harsh as it could or should be.
N.R., Texas
Does the 3.8% surcharge for investment income, which began Jan. 1, 2013, and will be used to help pay for Obamacare, also apply to tax-free muni bond income?
T.D., Florida
Are values of municipal bonds effected to the same extent that Treasury bonds are affected by an increase in interest rate?
J.R., Florida
If existing tax-free municipal bonds eventually become taxable by the actions of Congress, would bondholders have legal recourse?
G.W., Michigan
It seems that most of the Build America Bonds (BABs) issued during 2009-2010 had healthy coupons and sold well above par. As a result, their “yields-to-call” were much less than their “yields-to-maturity.” In your opinion, what is the likelihood that BABs will be called (and their yields decreased), if the only reason is to refund debt at a lower interest rate? I’m thinking it’s not likely since interest rates can’t realistically go much lower and the existing 35% federal interest subsidy would not be recovered in any refunding. Or am I off base?
M.M., Tennessee
In your article, “MSA Clause Impacts State Tobacco Payments“, regarding Golden State Tobacco Securitization Corp. Series 2005 bonds, you state, “These bonds, however, are also backed by an appropriation pledge of the state of California.” Could you elaborate?
M.W.
Based on your recent article, “A Lifeline After Sandy” and efforts in Congress to change or abolish the muni bond tax exemption, doesn’t it make sense for you to start a petition or letter to Congress signed by all of your muni bond clients? More than 50% of bond investors make less than $200,000 a year and any change will drastically hurt many retirees living off the income.
J.C., California
Why does a CNBC analyst say municipal bonds are bad investments and should be avoided? I hold many munis.
R.D., Vermont
I just read an article on Vanguard’s Web site that discussed the “non crisis” in the muni market. It occurred to me that you wrote the same thing more than 1 ½ years ago in your article, “A Funny Thing Happened While the Pundits Were Screaming“. I bet this guy makes the big bucks for his expertise!
J.S., Pennsylvania
I’m thinking of buying long-term bonds but I’m worried that upon my death, my estate may have to sell the bonds at a loss if interest rates have risen above the bond interest. I understand that for every 1% rise in interest rate, bonds decrease 3%. Am I correct in this?
C.C., California
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.
Talk to a Muni Bond Specialist
Call 1-800-367-2663 to find the tax-free bonds for you.