Lindy

This isn't a "get rich" scheme....

Just curious if anyone has diversified to include a Muni Bond Ladder via a broker?

I have been doing research and just curious if anyone has first-hand experience with this type of investment.

Thanks!

vagabond

I think the fundamental question is whether one should invest in muni bonds, whether you ladder them or not. Muni bonds are a good investment vehicle if you are looking to preserve capital while getting tax-free income. Depending on your age, how much you've saved and your financial sophistication, I consider munis as another basket where I put several eggs. My other baskets are stocks, real estate, gold.

Personally, I have munis, but it is only a small portion of our portfolio. The recession has been brutal, but there are tangible signs that we are coming out of it. Historically, the stock market will also see a rebound. I think that some monies should go into the stock market so that you can ride the upturn.

The other thing to think about when using brokers is that they want to be paid for their efforts. I prefer the do-it-yourself investments whenever I can.

TPROP4ever

Who's got any money to invest, most of us out here are just trying to keep food for our families on the table...PS my retirment plan is as follows

Retire at 65, hope my 401K hasnt tanked, have to wait till 67 to get SSI which wont be around, so I guess Ill work as a greeter at Wally World till i die at work...

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crazyjaydawg

Hope that DAL is still flying 747 classics and be lucky that they offer PRIP when you're 5 months short of the forced retirement at age 74 like the DAL-N guy...

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FighterHayabusa

Why not a a muni ETF or Mutual fund which are already laddered? This list contains some muni trusts that pay monthly divvies:
100 CEFs and Stocks That Pay Monthly Dividends -- Seeking Alpha

FredtheGnome

Working as a broker, I have some experience in the muni bond arena.

Unless you are established in the 25% tax bracket or higher, they probably aren't the best investment vehicle for you. Most are considered safer than corporate bonds and stocks, but you can also pick some muni bonds that will go sour on you.

I don't recommend trading muni bonds, but you can if you want to. I recommend bonds for my clients to hold until maturity. If this money you are investing is to build a nest egg, there can be a place for munis.

Generally, for investing for retirement, I would recommend that most people do the following. 1) Contribute to 401(k) to the max company match. 2) Then contribute to an IRA, usually roth, and mostly in stock mutual funds. 3) if your company has a good 401(k) contribute more there. 4) Look toward tax advantaged investments like annuities, muni bonds, and a few others.

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Maverick972

Muni's have had in incredible run. You can still find good yield and not have to take a bath credit quality wise. Other than that FredtheGnome says it perfectly. Also for what it is worth...work with someone. The extra point you spend with a good FA can save you in the long run.