68: Municipal Bonds, How Insiders Scale Their Tax Free Income

Michael Foster, the ‘CEF Professor’ from Contrarian Outlook, joins us for another episode to explain how to use municipal bonds to scale your tax-free income.  During this episode, you'll find out how to buy municipal bonds, determine if you should buy an individual muni bond, and understand the risk levels of the entire process. You'll learn how a municipal CEF operates, what tools to use, and how interest rates impact closed end funds. Listen to the end to hear Michael's top three muni funds and what Sam and Johnny Invest into themselves.   Links: Contrarianoutlook.com The CEF Newsletter   Where are we: Sam/Michael  - Bangkok Johnny - Ukraine   Recommended: Link to the newsletter: CEF Insider   2 Recent Articles on Municipal Bonds: The Shockingly Common Mistake That’s Costing You Thousands These 6%+ Yielders Are a Screaming Bargain   The muni funds recommendations discussed: Neuberger Berman New York Intermediate Municipal Fund (NBO) Nuveen New Jersey Quality Municipal Income Fund (NXJ) Pioneer Municipal High Income Trust (MHI) CEFconnect.com   Discussed: ILAB 63 – Talking CEFs for 9.9%+ Yield with ‘CEF Professor’ Michael Foster     Books: Start Here – Recommended Reading   Time Stamps: 06:09 - Are muni bonds boring? 07:27 - Why others invest in muni bonds? 09:01 - Tax considerations 10:02 - Three ways to buy municipal bonds 10:40 - Should you buy an individual muni bond? 13:00 - How does a municipal CEF operate? 15:25 - Average cap size 17:10 - Close end funds and rising interest rates 23:03 - Market trends and sell off 25:15 - Tools, software, and historical returns 26:59 - What is the risk level? 27:06 - Default rates 29:29 - California, New Jersey, Illinois 34:46 - Should you worry about fees? 38:55 - Recommended muni funds 48:42 - Investing in muni bonds 57:36 - Wealthfront investments   If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!   Copyright 2017. All rights reserved. Read our disclaimer here.