Municipal Bond Forum
You’re never too old to maximize your income
Q
I am 55 years old, so buying a bond that matures in 34 years seems silly. Could I sell a bond like that in, say, 10 years?
A
James A. Klotz responds:
Yes, there is an active market for municipal bonds. Bonds can always be sold prior to maturity. Prices, however, will be contingent on market conditions and the interest rate environment at that time.
But why is your age meaningful? After taking quality into consideration, we recommend maximizing your income by continuing to buy long-term bonds as your investment dollars become available. Of course, sometimes your bonds are worth more than you paid for them, and sometimes less, but your tax-free income – the main reason investors of any age buy munis – remains constant.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
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.