Municipal Bond Forum
Looking for growth and income
Q
I’m a former retail stockbroker looking at a forced retirement. My last couple of years had no income tax but I have to take RMDs (required minimum distributions) in two years, so I’m looking at all avenues of growth and income. Since you own the bonds you sell, are your quoted prices the price paid or are there transaction costs added? If I sell a bond, do you handle that side of the transaction too, or can I sell it open market through another broker/dealer? Do you hold the security?
A
James A. Klotz responds:
As bond dealers we act as principals in our transactions and sell from our own inventory.
All prices are net to our clients. There are no additional fees or costs. Our bonds are marked to the market daily.
We will always provide bids for the securities we sell, but your bond sales can be handled by any broker you choose.
Our custodian bank is Bank of New York/Mellon but we will deliver bonds free to any financial institution of your choice.
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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.