In Plus episode 482, we review the types, structures, default risks, and different tax treatments of municipal bonds. We also explain how to interpret the Income Strategies and Bond table in the monthly investment conditions report and discuss our plans to improve the table later this year. Finally, we provide an update on the YieldStreet crowdfunding platform, which encountered problems with its ship deconstruction deals. … [Read more...]
466 Plus: When ETNs Mature, Long Angle Community, and a Long Duration Credit Muni CEF
In Plus episode 466, we review the exchange offer for the JP Morgan Alerian MLP ETN (AMJ). The original ETN is set to mature in May 2024. David shares his experience and thoughts on the Long Angle community. Finally, we analyze the Nuveen Municipal Credit Income Fund (NZF). … [Read more...]
447 Plus: The Tax Impact of Active Stock Funds, Municipal Bonds, and Balancing Cash and Longer-term Bonds
In Plus episode 447, we discuss how to calculate the performance impact of capital gains tax distributions for an active stock mutual fund. We answer a member's question on what to do with a portfolio of individual municipal bonds selected by their previous investment advisor. Finally, we explore the decision between holding high-yielding cash or locking in higher coupon rates on longer-term bonds. … [Read more...]
418: Bond Investing Masterclass
What you need to know to confidently invest in bonds. Topics covered include: Key components of bond investing include face value, coupon rates, yield-to-maturity, duration, and convexity How to decide between owning longer-term or short-term bonds How to decide whether to own individual bonds or bond funds and ETFs When to use active bond management versus bond indexing How bullet bond ETFs work and when to use them How to know when to invest in municipal bonds and … [Read more...]
402 Plus: Buying TIPS, Taxes and Bonds, and Calculating Investment Returns
In Plus Episode 402, we discuss purchasing individual Treasury Inflation Protection Securities versus TIPS ETFs. We look at how bonds are taxed and how to tax-adjust municipal and corporate bonds. Finally, we compare return on investment with time-weighted and dollar-weighted returns. … [Read more...]
330 Plus: February 2021 Investment Conditions, Bond Fund Break Evens, and Municipal Bonds versus Utilities
In Plus Episode 330, we review investment conditions as of early February 2021. We calculate the break-even time for taxable and municipal bond funds to recoup price losses due to rising interest rates. We also compare municipal bond funds to utility dividend yields and find utilities to be more attractive. … [Read more...]
296 Plus: After-hours Trading, Municipal Bonds and PeerStreet Discounted Notes
In Plus episode 296 for the week of May 2, 2020, we learn about extended-hour stock trading and why the after-hour trading sessions can be volatile. We look at the yields, pricing, and historical default rates of municipal bonds in light of the Federal Reserve's announcements regarding the Municipal Liquidity Facility. Finally, we evaluate PeerStreet's new program to purchase discounted notes that yield 11% to 14% before default. … [Read more...]
269: How the Public Sector Pension Crisis Will Impact You
Why most state and municipal pension plans are underfunded and why that could lead to higher taxes and reduced government services. Why participants in state government retirement systems have greater protection against benefit cuts than participants in municipal retirement systems. In this episode you’ll learn: How defined benefit plans work.Why there is more subjectivity regarding valuing a pension plan's liabilities compared with its assets.What does it mean for a … [Read more...]
260: July Mid Month Update, Asset Allocation Example, Evaluating Municipal Bonds and How To Buy Gold and Cryptocurrencies
In Plus episode 260 for the week of July 19, 2019, we look at stock and bond market performance month-to-date as well as recent economic releases. Using a member as an example, we walk through the tools on Money For the Rest of Us Plus for deciding on a new asset allocation target. We evaluate a Vanguard municipal bond fund and compare it to the overall bond market. Finally, we discuss how to buy and store gold and cryptocurrencies. … [Read more...]
251 Plus: Trade War Impact, Monetary Value, and High Yield Munis
In Plus episode 251 for the week of May 11, 2019, we look at the economic implications for the U.S. and China related to the escalation of the trade war with the imposition of higher tariffs. We take a closer look at what it means that money has value because federal governments demand taxes be paid in a designated currency. Finally, we look at the expected return and risk of high yield municipal bonds. … [Read more...]
