Municipal Bond Forum
Munis when you move
Q
Curious what your strategy/opinion is on investing in long-term munis for a particular state, say Ohio, when you may move out of state in the future, say to New York. Is the loss of state-tax exemption a reason not to invest longer term? What do you recommend, hold or swap?
A
James A. Klotz responds:
Good question. Both New York and Ohio levy hefty taxes on interest from out of state bonds. Regardless, this should not deter you from buying longer-term bonds and maximizing your tax-free income, especially if the timing of your move is uncertain.
One way or the other, when you move to New York, you will be converting your Ohio bonds to securities that are triple exempt in New York.
General market conditions may be different at the time of your move, but they will be relative throughout the country.
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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.
