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No. of Recommendations: 1
Hi Guys,

Same reason as always. When interest rates go back up, funds lose value (lower NAV) and the increasing yield on the fund will not compensate for the lower NAV.

Defeatist attitude! The NAV's go up and down. Common stock NAV goes up and goes down, but with good companies, one winds up with large growth in NAV.

Let's say I put all my money in 5% CD's (to insure no loss of principle at any time) After taxes (my state and fed. = 31%), I have made 3.45%; after inflation (say 3.5%, way too low right now) I have made nothing! How will this benefit me going into retirement?

I have a considerable amt. in several Nuveen Muni-CEF's. Have owned them for several years and watch the price/NAV closely. One learns the price range and can cherry-pick the one to add-to, by 'knowing' when the price is 'low'. Not market timing (don't care what the market is doing); call it 'price-timing'. Muni-CEF's are high now, in Dec. they were very low, and one could buy at 5 to 6% div. This div. being 'tax-free' is a far superior return to a CD (especially going forward). My return is 'pretty much' locked in, whereas CD returns are plummeting with the FED lowering rates (more reductions coming). Soon, CD returns will be below inflation BEFORE TAXES!!

Monthly 'tax-free' checks are very nice to receive!!

rk (Muni-CEF bagholder)
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