No. of Recommendations: 0
I live in a state with high income tax (CA), and have a few munis that I purchased 1-2 years ago.

Assuming that the state can continue to make payments on its bonds (don't want that issue to obfuscate my question), my question is...

When I look at CA bonds on Fid. or Vgd., the yields for bonds maturing within 3 years are so low, even keeping in mind the tax-equiv. yield, that it looks like it makes more sense to put the money in a CD or even a savings account. Am I missing something here? Why would one want to buy munis, given the super low yields?
Print the post  

Announcements

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 Glassdoor #1 Company to Work For 2015! 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