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Corp or Muni Bonds

Posted on 4/22/16 at 10:32 am
Posted by Covingtontiger77
Member since Dec 2015
10256 posts
Posted on 4/22/16 at 10:32 am
Anyone placing their cash reserves in any Corp or Muni bonds with a 2 yr maturity date just to get some return as opposed to it sitting in a savings account?

If so, any advice?
Posted by Coach Guidry
Member since Nov 2007
2333 posts
Posted on 4/22/16 at 11:02 am to
quote:

Anyone placing their cash reserves in any Corp or Muni bonds with a 2 yr maturity date just to get some return as opposed to it sitting in a savings account? If so, any advice?


I had just posted this in another thread. And now you bring it up.

I moved a good bit of my cash out of savings into a MUNI bond and I am not disappointed. Given I am not a master when it comes to the markets, I am making more money in these accounts than it was in Savings. By a large margin.

Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 4/22/16 at 11:12 am to
Just like anything else, it depends on who is issuing the bond. City of Detroit bonds and Puerto Rico bonds have ridiculously high yields, but there's a bit of a catch ...

In general, munis will pay less due to the tax exemption. If you're a baller in the top tax bracket then by all means, but if not I'd stick with corporate. But even in that sector you have yields all over the map depending on how lucky you feel.
Posted by roguetiger15
Member since Jan 2013
16167 posts
Posted on 4/22/16 at 11:18 am to
get a state issued muni bond dealing with infrastructure(roads, bridges etc). if you are a resident of Louisiana and you get a Louisiana muni bond it is triple tax free.
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