Gyroscopic Investing

Libertarian666 wrote: I know this is an old thread, but anyone who counts on governments (especially governments without central banks) to honor their promises is very naive.

dualstow wrote:

Libertarian666 wrote: I know this is an old thread, but anyone who counts on governments (especially governments without central banks) to honor their promises is very naive.

That's a nice quote.
This is the part where I smile, deposit my monthly tax-free check and move on.

Pointedstick wrote: The federal government may not care, but might your state government?

Ad Orientem wrote: That said for people who live in low tax states or who are more concerned with diversifying their holdings (i.e. they don't want all Illinois bonds) they work well.

HB Reader wrote: Nuveen Municipal Value Fund (NUV) is a pretty good, albeit plain vanilla, closed end municipal bond fund.  It is of medium duration, well-diversified, and doesn't use much short-term borrowing (leverage) to juice returns which is fairly rare these days.  If interest rates do rise, it should suffer less than most similar muni funds.  It is currently yielding about 4.5%.

I have used it off and on for many years in my VP and some I manage for other people.  Every once and a while you can buy it or reinvest the dividends at small discounts to NAV.

buddtholomew wrote: Whats the question? The portion of bonds issued by your state in a national muni fund are not taxable on your state return. VWIUX has approximately 4% of holdings issued by the state of California. You can reduce taxes owed on muni distributions by that amount.

foglifter wrote:

buddtholomew wrote: Whats the question? The portion of bonds issued by your state in a national muni fund are not taxable on your state return. VWIUX has approximately 4% of holdings issued by the state of California. You can reduce taxes owed on muni distributions by that amount.

So what you're saying is I would have to check the brokerage statement, figure out what %% of the distributions is from California munis and report the rest (total income minus CA income) on my California tax return?

foglifter wrote:

buddtholomew wrote: Whats the question? The portion of bonds issued by your state in a national muni fund are not taxable on your state return. VWIUX has approximately 4% of holdings issued by the state of California. You can reduce taxes owed on muni distributions by that amount.

So what you're saying is I would have to check the brokerage statement, figure out what %% of the distributions is from California munis and report the rest (total income minus CA income) on my California tax return?

Ad Orientem wrote: Muni bond yields are continuing to climb...

Code: Select all

Maturity 	Yield 	-1 Day 	-1 Wk 	-1 Month
2yr AA  	0.61 	0.56 	0.59 	0.57
2yr AAA 	0.43 	0.38 	0.41 	0.69
2yr A   	0.84 	0.71 	0.77 	0.62
5yr AAA 	1.28 	1.25 	1.30 	1.46
5yr AA  	1.35 	1.49 	1.19 	1.39
5yr A   	1.71 	1.96 	2.02 	1.43
10yr AAA 	2.70 	2.72 	2.76 	2.65
10yr AA 	2.75 	2.80 	2.77 	2.78
10yr A  	3.09 	3.12 	2.92 	3.16
20yr AAA 	3.59 	3.36 	3.39 	3.55
20yr AA  	4.62 	4.59 	4.42 	4.42
20yr A   	4.78 	4.78 	4.61 	4.08

Edit: Sorry about the unreadable table. There appears to be no way to fix it without a lot of work. The source is here.

http://finance.yahoo.com/bonds/composite_bond_rates