Municipal Bond Forum
Buying right
Q
I’m 65 and I want to move some of my portfolio into bonds. How do I guarantee the lowest possible commission on the purchase and sale of bonds?
A
James A. Klotz responds:
We agree that commissions shouldn’t be excessive, but seeking the lowest possible commission rate probably shouldn’t be your main priority. We think it is considerably more prudent to focus on the best securities to own, rather than what it cost to buy them.
Unlike shares of a particular stock, municipal bonds are not all created equal. If you end up with the wrong bonds or bond funds, it wouldn’t matter what the commission was.
You don’t want to find out at age 75 that you were penny wise and pound foolish.
Start here.
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The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.