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Municipal Bond Investors Pay Steep Commissions

Sunday, March 16, 2014 - 6:30 AM
From the WSJ
Investors who put cash into municipal bonds—a popular strategy for those seeking safe, tax-free bets—are paying twice as much in trading commissions as they would for corporate bonds, according to a study for The Wall Street Journal.
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4
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Sunday, March 16, 2014 - 7:42 PM
"Because institutional investors get better pricing than retail investors a bond mutual fund that invests in municipal securities is almost a free lunch. Retail investors are paying almost a full percent more to buy individual municipal securities than the institutional investors. If you can’t beat them join them. Make sure you select a fund with an expense ratio lower than .50% or 50 basis points. Many fund companies such as Vanguard, Fidelity, and T. Rowe Price should be able to accommodate you. In addition Vanguard and Fidelity have Admiral and Spartan shares that give you an even further discount if you meet their minimum purchase requirements."

Buyer Beware: The Hidden Costs of Municipal Bonds | Investor Solutions
3
ShorebreakShorebreak2,699 posts since
Apr 6, 2010
Rep Points: 14,632
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