Hi all,
I live in a very high tax city/state, NYC. I have a chunk of change in a taxable account that is basically sitting in cash. I was thinking of either putting it into EmigrantDirect at 4.65% or placing it into a closed-end NY Municipal bond fund. But, i have not invested in CEFs before, so I'm not sure if its a good idea or not.
I was, in particular, looking at symbol IQN and AYN:
They both read "The investment objective of the Fund is to provide current income exempt from Federal, New York State and New York City income taxes."
It is currently selling at a 9% discount to NAV, which is around the historical level for this particular fund. Expense ratio is at .9% and currently yielding 5.33% 3-year return 5.13%
Or, AYN, expense ratio 1.26%, discount 8% and yield 5.51%. 3-year return 6.23%
With current market conditions, am I better off playing it safe and putting it into EmigrantDirect and paying the tax on interest? Or, trying these out and getting a nice tax-free return?
Thanks for any help!
Olav
I live in a very high tax city/state, NYC. I have a chunk of change in a taxable account that is basically sitting in cash. I was thinking of either putting it into EmigrantDirect at 4.65% or placing it into a closed-end NY Municipal bond fund. But, i have not invested in CEFs before, so I'm not sure if its a good idea or not.
I was, in particular, looking at symbol IQN and AYN:
They both read "The investment objective of the Fund is to provide current income exempt from Federal, New York State and New York City income taxes."
It is currently selling at a 9% discount to NAV, which is around the historical level for this particular fund. Expense ratio is at .9% and currently yielding 5.33% 3-year return 5.13%
Or, AYN, expense ratio 1.26%, discount 8% and yield 5.51%. 3-year return 6.23%
With current market conditions, am I better off playing it safe and putting it into EmigrantDirect and paying the tax on interest? Or, trying these out and getting a nice tax-free return?
Thanks for any help!
Olav