Municipal Bond Forum
Balance in municipal bonds
Is it wise to put all your money in municipal bonds? It’s tempting because they’re tax-free. The money markets are paying around 1% and are taxable. Should one have some balance in their investment program?
James A. Klotz responds:
Your investment portfolio should only contain securities with which you are comfortable.
Holding municipal bonds exclusively does not necessarily connote “all your eggs in one basket,” as the $3.8 trillion municipal bond market allows for ample diversification.
Naturally, we cannot make recommendations without more information regarding your specific financial situation and objectives. Please contact us if you would like to speak with one of our bond specialists who will help you explore your options.
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.
The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.