Investing in Municipal Bonds of California
Stock market investments are considered to be very risky investments. The other alternatives that are there are the bonds.
Various states issue bonds like the state of California issues the California Tax Free Municipal bonds and these are backed by the State government of California. It helps as that means as that means that your money is safe and state will pay you.
Muni bonds offer the benefit that it will be easy to get the safety into your portfolio. California government is under the stress because of huge deficits so be careful while investing. Overall the belief is that these are the one of very safe instruments for investment. There are a lot of states that offer these bonds apart from California.
Always get your states municipal bonds as then they are tax free. This is because of the reason that these bonds are no longer tax free for residents of other states. That will mean that the State tax will have to be paid though the federal tax is not there.
As an investor the best thing to do is to make sure that you spread your risk. For that invest some portion of your money in these bonds. For higher gains you should invest some part in the stock market and you should have some part on the savings account.
You can make more money with bonds when you have a diversified portfolio. Diversification is essential to make sure that when something happens to the stock market you have other avenues where the investment income can be from. This is in effect the spreading of your risk portfolio. Always make sure that you invest in these bonds for safety factors. - 23199
Various states issue bonds like the state of California issues the California Tax Free Municipal bonds and these are backed by the State government of California. It helps as that means as that means that your money is safe and state will pay you.
Muni bonds offer the benefit that it will be easy to get the safety into your portfolio. California government is under the stress because of huge deficits so be careful while investing. Overall the belief is that these are the one of very safe instruments for investment. There are a lot of states that offer these bonds apart from California.
Always get your states municipal bonds as then they are tax free. This is because of the reason that these bonds are no longer tax free for residents of other states. That will mean that the State tax will have to be paid though the federal tax is not there.
As an investor the best thing to do is to make sure that you spread your risk. For that invest some portion of your money in these bonds. For higher gains you should invest some part in the stock market and you should have some part on the savings account.
You can make more money with bonds when you have a diversified portfolio. Diversification is essential to make sure that when something happens to the stock market you have other avenues where the investment income can be from. This is in effect the spreading of your risk portfolio. Always make sure that you invest in these bonds for safety factors. - 23199
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The author suggests diversification using California tax free municipal bonds and independent broker dealers
posted by X - Men @ 9:48 AM
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