A Investment forum. InvestmentBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » InvestmentBanter forum » Investment newsgroups » Financial planning
Site Map Home Register Authors List Search Today's Posts Mark Forums Read Web Partners

Muni Bond ETFs looking good?



 
 
Thread Tools Display Modes
  #1  
Old March 14th 16, 01:58 AM posted to misc.invest.financial-plan
dumbstruck
external usenet poster
 
Posts: 399
Default Muni Bond ETFs looking good?

Here are some muni observations that puzzle me...

Muni bond funds recently seem to have some of the steadiest preservation of capital of all the bond types that I track, in spite of the Puerto Rico implosion. PR (and VI) is a critical part due to non-state-taxability, yet muni funds such as HYD and HYMB no longer seem to report their exact tax-year percentage on their web sites (just impressionistic snapshots at inconvenient time frames).

It looks like turbotax no longer lets you plug in the state-exempt amount, like 9%, in the fed input part of the process. You have to hack it into an "other subtractions" part of the state return.

In the last 365 days, most bond etf type values have converged to unchanged (last 2 years a slight gain). Exceptions were the junk bonds cratered, bank loan etfs were weak, and corp a bit soft. Treasury TLT very volatile, but along with SPY stocks netted around zero change excluding dividends. So with munis yielding 4+% and prices steady, maybe they are good even aside from fed tax benefits and a bit of state tax benefits (there isn't a "my state" etf)?

  #2  
Old March 16th 16, 03:09 AM posted to misc.invest.financial-plan
dumbstruck
external usenet poster
 
Posts: 399
Default Muni Bond ETFs looking good?

Investment observations after doing fed taxes with a lot of cap loss harvesting:

- Muni dividends are included for purposes of health care subsidy denial.

- Non muni but exempt dividends can be taxed at a really low rate; even 0. I can't follow the worksheet gyrations, but could one make a low tax but comfortable living on primarily exempt dividends (maybe AMT would strike)? Not that it would help me much, because state income tax rate has been approaching and now exceeds fed rate for me!

  #3  
Old March 23rd 16, 06:27 PM posted to misc.invest.financial-plan
David S. Meyers, CFP(R)
external usenet poster
 
Posts: 16
Default Muni Bond ETFs looking good?

On Tuesday, March 15, 2016 at 7:10:04 PM UTC-7, dumbstruck wrote:
Investment observations after doing fed taxes with a lot of cap loss harvesting:

- Muni dividends are included for purposes of health care subsidy denial.


They are also included when figuring out how much of one's SS is taxable.

- Non muni but exempt dividends can be taxed at a really low rate; even 0.


Do you mean "qualified dividends" ?-- typically paid by a corporation and taxed similarly to long-term capital gains - which does have a 0% bracket for folks whose ordinary income is in the 10 and 15% brackets (i.e., for a single person, under around $38k)

  #4  
Old March 23rd 16, 09:06 PM posted to misc.invest.financial-plan
dumbstruck
external usenet poster
 
Posts: 399
Default Muni Bond ETFs looking good?

On Wednesday, March 23, 2016 at 7:30:04 AM UTC-10, David S. Meyers, CFP(R) wrote:
Do you mean "qualified dividends" ?-- typically paid by a corporation and taxed similarly to long-term capital gains - which does have a 0% bracket for folks whose ordinary income is in the 10 and 15% brackets (i.e., for a single person, under around $38k)


Yes, the qualified rate apparently applies to dividends beginning either 60 or 90 days after your purchase of common or preferred stock. For middle incomes they may be only taxed at around 15% vs twice that for corp bonds or tbills (latter not taxed by most states tho, I guess).

 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
muni bond fund vs. "core" bond funds Sandra Loosemore Financial planning 6 March 28th 07 10:02 AM
Laddering Muni Bonds vs Muni Bond Fund Peregrine Maitland Financial planning 29 October 29th 06 09:37 PM
muni bond funds? ellen miller Financial planning 4 March 5th 06 11:30 AM
muni bond ripoffs fined Boob Stocks & shares 0 June 30th 04 05:34 PM
muni bond ripoffs fined Boob Stocks & shares 0 June 30th 04 05:34 PM


All times are GMT +1. The time now is 05:47 AM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright 2004-2018 InvestmentBanter.
The comments are property of their posters.