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Are tax excempt bonds a good investment now? |
Are tax excempt bonds a good investment now? Why not? If the democrats gain control of the congress the tax cut will end and people will be bidding up tax exempts like crazy. If not, well, that is money you won't have to pay 35 percent on. no, the govt will default I am guessing you are referring to muni bonds, bonds released by city, county and state government. Unless you are in the highest tax bracket, muni bonds are not the best investment when it comes to bonds. Muni bonds tend to be priced at a reduced price as any other bonds because you do not pay any taxes on the interest payments. Because of this, the price is usually adjusted with the highest tax rate in mind (the biggest tax savings). |
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Terrible investment. The interest is not keeping up with inflation and when inflation heat up due to the rate cuts, then there will have to be interest rate increases and the price of bonds will d... I am not exactly certain what you mean by "premium". If you are using the term to refer to bonds selling at a premium to their redemption value, you need to be very careful about invest... Yes its a good way to invest a few thousand - Although their are better areas it is not good to put all your eggs in one basket. ...The 10yr Bond rate was expected to fall to under or near 4.00%. Of course, just a couple of weeks ago that didn't seem possible. The Federal Reserve was also supposed to cut rates on money too... right now they are the safest thing out there besides a federally insured savings account. I also kinda like the idea of putting funds in a european bank and converting the funds to Euros. Like th... The answer to your question depends on a couple of factors, such as your age now and how much risk your willing to accept. In turn one would need to know where you want to be "financially"... it's lending money to government or corporate, low risk. bonds to local government is call municipal bonds, all interest you earn are tax free, both federal and state, but you have to pay a fe... Very safe, They pay low interest, but the interest usually isnot subject to fed income tax. because of that, they are attractive to those in high tax brackets. ... |
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