Any of yall thinking about adding in some munis to the mix since they haven’t fallen off as much as CDs and HYSAs plus the obvious tax advantage of their interest not being taxable income?
Many 20 year municipals are still near 5% without paying a premium in the primary and secondary market.
Downside: interest rates may run higher with inflation, but the new fed chair seems unlikely to hold rates high long term.
These are also callable meaning if interest rates do drop, municipalities may call them and reissue at a lower rate. There is also the risk of default; be sure to review the rating and finances of any issuer before purchase. I’m only purchasing A+ or higher.
Upside: 5% without taxes is equivalent to 7-8% for states without income taxes, possibly more if your buying in state in a state with income taxes.
This is not advise, but a forum for discussion. Simply wondering if anyone’s is diversifying their portfolio with Gold and silver still running down from all time highs, the stock market being strongly AI focused and general uncertainty about the future.