Municipal Bond Forum
No need for bond manager
Q
Do you offer managed accounts in municipal bonds?
A
James A. Klotz responds:
Our experience has taught us that individuals do not need a “bond manager” to produce a portfolio that provides safety and a steady stream of tax-free income. In fact, we have never seen a managed bond account or bond mutual fund which, after accounting for fees and costs, produced better results than simply owning the municipal bonds themselves.
We do not think you need us, or anyone else, to manage your bonds. Our
approach is simple. We assist our clients in purchasing quality bonds
with excellent tax-equivalent returns. Then we advise them to leave them
alone. An individual continually buying and selling bonds in his
portfolio is doing himself a disservice. There may be situations that
dictate selling a bond, but they should be based on common sense reasons
that are easily understood by the investor.
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.