I'm trying to decide if I want to buy some more California Muni bonds that a broker is offering. They pay 4% and are AA rated and are state and federal tax free. I'm deciding between buying more bonds or more in bond funds. I'm wondering what people think about buying an holding bonds and specifically California Muni bonds and what you think about bond funds, both index and managed. I'm sure this has been talked about a lot and people have different ideas, but I'm just looking for where people are at now. I like that the bonds are tax free, pay a decent rate, and don't have a management fee but I'm a bit concerned about the state of financial affairs in California.
For background I currently have 3.5% of my net worth in California Muni bonds. I have 3.5% in bond funds including an broad index fund and a managed Muni fund. I have 2.6% of my network worth in cash with this brokerage to invest.
I'm in the 24% tax bracket now that I'm retired and I'm moving to Nevada, which is state tax free, in a few months. I have other investments, mostly mutual funds and two condominiums and other cash to invest.
Thanks for the replies.
For background I currently have 3.5% of my net worth in California Muni bonds. I have 3.5% in bond funds including an broad index fund and a managed Muni fund. I have 2.6% of my network worth in cash with this brokerage to invest.
I'm in the 24% tax bracket now that I'm retired and I'm moving to Nevada, which is state tax free, in a few months. I have other investments, mostly mutual funds and two condominiums and other cash to invest.
Thanks for the replies.
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