Where can you buy municipal bonds? Banks, online... Don't know where to start, thanks!
2007-02-22 17:46:18 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Be sure you want to do this before you get too deep into it. The real downside, in my case, is to discover that they are practically un-marketable. You seem to be doomed to hold the "City of North Whizbang Sewage Improvement Bond" until maturity, because there is no liquid market for it. I've personally got several through inheritance and found myself stuck as described. Good tax advantages, good return if that is what you want (income vs. growth), but the liquidity is bad. Be sure before you leap.
2007-02-23 22:07:50 · answer #1 · answered by ZORCH 6 · 0⤊ 0⤋
You want to buy a diversified portfolio of bonds, as any single bond could default. Its best to get a municipal bond mutual fund or a municipal money market fund. Choose one in your state to get income free of both state and federal taxes. I think Vanguard has the lowest expenses, but Fidelity is good also.
Go to the site below and look at the tax-exempt funds. You'll have to page down a bit to see the tax-exempt bond funds.
2007-02-23 01:30:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Municipal bonds are usually sold in $100,000 lots. With a smaller amount the commission gets too high.
For mutual funds look at the Thornburg Family. Many years experience in the muni business.
2007-02-23 11:09:30 · answer #3 · answered by Tim P 2 · 0⤊ 0⤋
how much money are you investing? municipal bonds are usually sold in big amounts. the easiest thing to do for now is to buy a municipal bond mutual fund through a mutual fund company like fidelity, vanguard, and t rowe price.
2007-02-22 22:30:44 · answer #4 · answered by the_quiet_storm2 3 · 2⤊ 0⤋