UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: HeadDoc56 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35361  
Subject: Re: Individual bonds vs funds Date: 3/26/2007 2:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
RN, Loki and Gordon, thanks for your responses and the link to the FAQs. I'll spend some time trying to digest the post. In the meantime:

I guess you're talking about a tax exempt muni fund, given that you said the income is tax free. If you want to invest in a muni bond fund, take a look at Vanguard.

Yes. It's a Franklin Templeton CT Municipal bond fund. And yes, it does have a front end charge depending on the amount invested.

I looked at the Vanguard site and though they do have tax exempt bond funds, they don't have one for CT. My layman look at state tax rates suggests CT is not particularly high or low.

In general, if you are in the 28% tax bracket or under, you should be able to beat muni bonds with other fixed-income options, except for high tax states with state specific munis

We are in the 28 % tax bracket. So I guess we should be looking at other fixed income options as well.

Just a big picture observation: I assumed the whole point of bonds was to avoid the risk of losing principle and to give you a fairly certain idea of the yield. I guess bond funds do not really provide this level of certainty.

Best,
HD56
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Macro Economics

U.S. Stable, Europe Stalling
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement