Deep Dive: Municipal bond yields are attractive now — here’s how to figure out if they are right for you

by | Oct 27, 2022 | Stock Market

This has been an unusual year for financial markets, with stocks and bonds falling in tandem. For bonds, the declines mean yields have become viable again for income investors who over the previous decade or two had been forced to look to the stock market and take more risks to find the investment income they needed.

Lewis Altfest, co-founder of Altfest Personal Wealth Management, said during an interview that clients were “just starting to get interested in bonds again.” He pointed to municipal bonds as being particularly attractive. There are different ways to invest in bonds. If you are looking for lower price volatility in an uncertain market, here are some easy ways to take advantage of a favorable setup in shorter-term bonds. In this article we will focus on the income objective, specifically with long-term municipal bonds. Municipal bonds are issued by states, cities or other municipalities, such as water districts. Many are exempt from federal income taxes, and if a muni is issued within your state, it may be exempt from state and local taxes as well. Altfest’s firm is based in New York and manages about $1.5 billion for private clients. He shared a municipal bond strategy designed to offer the best combination of risk and reward in the current environment, especially for income-seeking investors in higher tax brackets who can commit for many years.A list of municipal bonds for your review First …

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