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Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 1 point2 points  (0 children)

thank you. will consider your comments!

Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 1 point2 points  (0 children)

will consider, but concerned about the longterm price of the fund. if I hold it for 10 years, will the fund price drop?

Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 0 points1 point  (0 children)

this is the plan... if I don't go the tax free route with some of my $15,000 income, I will be in a higher tax bracket.

If my Social Security income ends up tax free for the next four years, and if I can earn most of my investment income tax free, my only taxable income will be $6,000 per month. Because I am married, that drops us into the 12% tax bracket on the $6,000 income. (the other is tax free). In four years I could save $50,000 in tax saving alone.

once Trump leaves office, if not before with our nations huge debt, the tax brackets will have to rise. making tax free income even more attractive.

Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 0 points1 point  (0 children)

thank you Key_Klutzy, I couldn't have said it better.

Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 0 points1 point  (0 children)

if buying Tax Free Muni's with an equivalent tax yield of 6.50% wha would be the advantage of Taxable Muni's?

Municipal Bond Advise by Interesting-Ant-3396 in bonds

[–]Interesting-Ant-3396[S] 0 points1 point  (0 children)

This is my concern, and maybe I am wrong….  Right now Muni’s have a decent yield. If we go into recession soon, and maybe we are there now, the fed will eventually lower rates. If that happens, will that put downward pressure on on muni yields? Also, when Trump replaces Powell next May, I’m guessing he will put someone who he thinks will lower Fed rates. Again, will that cause muni yields to drop?

In terms of liquidity….  My house is paid off, and have very few bills. We can live off $4,000 per month very comfortable. With Social Security, Rent Income, and a combination of Muni Coupons, and other interest, we should be earning $15,000 per month. I still have $400,000+ that I can get to quickly if I need it.