Regarding John Galt's aversion to stocks... He is certainly correct in believing that stocks are a risky investment. The thing that everyone should realize is that practically every other investment also carries certain risks. About the only one that is almost completely safe, at least in the foreseeable future, is TIPs or I Bonds (which pay less than TIPs but are tax-deferred). Virtually everyone knowledgeable about financial economics agrees that the rational strategy for dealing with this riskiness is to own a diverse selection of assets, including stocks, such that the fluctuations in market value of the various assets tend to compensate. This principle of diversification to provide portfolio stability becomes especially critical when a person is drawing down their assets in retirement.
Regarding the "leveraged muni bond funds" mentioned by unclemick, BEWARE. I don't know the specifics, but the principle of "no free lunch" says that you can't get enhanced return without increased risk. And usually these "innovative" "financial products" are gimmicks with high expenses that cause the probable extra return to be very small in relation to the extra risk.
A good recent example involved the Heartland mutual fund company that offered, I believe, two funds investing in "high yield" municipal bonds. These funds collapsed and resulted in legal action against Heartland when much of their holdings turned out to be so junky as to be unmarketable. I was particularly aware of this because I have some money in the Heartland Value Fund, which has done very well and fortunately was not affected.
Regarding the "leveraged muni bond funds" mentioned by unclemick, BEWARE. I don't know the specifics, but the principle of "no free lunch" says that you can't get enhanced return without increased risk. And usually these "innovative" "financial products" are gimmicks with high expenses that cause the probable extra return to be very small in relation to the extra risk.
A good recent example involved the Heartland mutual fund company that offered, I believe, two funds investing in "high yield" municipal bonds. These funds collapsed and resulted in legal action against Heartland when much of their holdings turned out to be so junky as to be unmarketable. I was particularly aware of this because I have some money in the Heartland Value Fund, which has done very well and fortunately was not affected.