Comments on: How Municipal Bond Investors Have Avoided the Recession http://www.finetunedfinances.com/2009/04/how-municipal-bond-investors-have-avoided-the-recession/ Make Your Wallet Run Like New Again Thu, 29 Jul 2010 20:28:31 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: admin http://www.finetunedfinances.com/2009/04/how-municipal-bond-investors-have-avoided-the-recession/comment-page-1/#comment-455 admin Tue, 21 Apr 2009 00:54:59 +0000 http://www.finetunedfinances.com/?p=650#comment-455 Interesting advice, I wonder how much more risk buying individual bonds ads to one's portfolio, I guess if you buy decent enough bonds it should be fine. I invest in VMLTX (Vangaurd's Limited Term Muni Bond Fund), and it's been a great rate of return this year so far. I think it's up over 2% Interesting advice, I wonder how much more risk buying individual bonds ads to one’s portfolio, I guess if you buy decent enough bonds it should be fine. I invest in VMLTX (Vangaurd’s Limited Term Muni Bond Fund), and it’s been a great rate of return this year so far. I think it’s up over 2%

]]> By: Super Saver http://www.finetunedfinances.com/2009/04/how-municipal-bond-investors-have-avoided-the-recession/comment-page-1/#comment-452 Super Saver Mon, 20 Apr 2009 12:28:03 +0000 http://www.finetunedfinances.com/?p=650#comment-452 I prefer to buy individual bonds and hold to maturity. That way I don't have to worry about selling at a discount as sometimes happens with bond funds. The municipal bonds I bought in 2006 have done extremely well. They are now priced above what I paid for them and they are paying 3.5 to 4.5% triple tax free. When I bought them in 2006, it wasn't clear they would be a good investment. I guess it shows the benefit of diversifying and of buying investments when they are not in favor :-) I prefer to buy individual bonds and hold to maturity. That way I don’t have to worry about selling at a discount as sometimes happens with bond funds.

The municipal bonds I bought in 2006 have done extremely well. They are now priced above what I paid for them and they are paying 3.5 to 4.5% triple tax free. When I bought them in 2006, it wasn’t clear they would be a good investment. I guess it shows the benefit of diversifying and of buying investments when they are not in favor :-)

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