http://www.contrarianprofits.com/articles/3-ways-to-play-once-in-a-lifetime-muni-bonds-phenomenon/6174 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 18 May 2010 05:09:46 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.contrarianprofits.com/articles/3-ways-to-play-once-in-a-lifetime-muni-bonds-phenomenon/6174/comment-page-1#comment-5230 Jason Deveraux Thu, 16 Oct 2008 13:59:36 +0000 http://www.contrarianprofits.com/?p=6174#comment-5230 DO NOT buy a leveraged muni fund like NIO. The common shareholders are being eaten alive by the high reset payment rates being paid to the ARPS holders. (Auction Rate Preferred) Funds like NIO are now paying out something like 7% to the preferred holders while collecting something like 5% from their bondholdings. Since the ARPS market collapsed in Feb 08 the reset rates have been at the maximum. This is an unsustainable situation. Do your homework Green before making such a dangerous recommendation. DO NOT buy a leveraged muni fund like NIO. The common shareholders are being eaten alive by the high reset payment rates being paid to the ARPS holders. (Auction Rate Preferred) Funds like NIO are now paying out something like 7% to the preferred holders while collecting something like 5% from their bondholdings. Since the ARPS market collapsed in Feb 08 the reset rates have been at the maximum. This is an unsustainable situation. Do your homework Green before making such a dangerous recommendation.

]]> http://www.contrarianprofits.com/articles/3-ways-to-play-once-in-a-lifetime-muni-bonds-phenomenon/6174/comment-page-1#comment-5207 Scott Lovingood Thu, 16 Oct 2008 02:13:11 +0000 http://www.contrarianprofits.com/?p=6174#comment-5207 There are several closed end funds for tax free munis. Blackrock has several. BFK is currently yielding over 10% tax free and is a discount to the NAV. If you live in a high tax state such as NY or Cal you can find funds that specifically focus on munis that are tax free in those states as well. Tax free income will become a huge way to finance your retirement. The biggest difference between the funds and the actual bond is price fluctuations. Bonds tend to be more stable (mainly because you don't look at them daily) while the funds have more day to day fluctuations. There are several closed end funds for tax free munis. Blackrock has several. BFK is currently yielding over 10% tax free and is a discount to the NAV. If you live in a high tax state such as NY or Cal you can find funds that specifically focus on munis that are tax free in those states as well. Tax free income will become a huge way to finance your retirement. The biggest difference between the funds and the actual bond is price fluctuations. Bonds tend to be more stable (mainly because you don’t look at them daily) while the funds have more day to day fluctuations.

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