Sunday, August 9, 2009

Is it a good time for short term (municipal) bonds?

With all the rate cuts and lower interest rates for saving accounts and CDs, I%26#039;m considering moving more of my money into a municipal bond fund (short term) that I have, which has been yielding better than what I would get at banks in recent years.



Is it a good time to do it? With the rates going down, would the yield on the short term bonds (and thus for the funds) go down just the same as with savings and CDs?



Would the prices of these bond funds go down later (since they have low rates) when I%26#039;m ready to cash them?



I may need the money in a year or so (or a bit sooner). Would you keep them in the bank (CDs, saving accounts) to avoid the risk?



Thank you in advance for your advice!



Is it a good time for short term (municipal) bonds?credit rating





that what i have been doing on advise from my broker!!! hope she is right!!!



Is it a good time for short term (municipal) bonds? loan



Go to:



low-cost-stock-recommendations



.com



Click on the %26quot;Bonds%26quot; Button on the Navigation Bar



They talk about the unique opportunity currently with US Municipal Bonds.....It will help you a lot



Good Luck|||It kind of depends on what tax bracket you%26#039;re in as interest on municipal bonds are free from federal taxes. If you%26#039;re in a higher tax bracket (31% or over) go for it. Otherwise try a corporate bond fund which will pay a higher interest rate, but be taxable.

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