Illinois Municipal Bonds
Terry, I hold around $60,000 in Illinois tax exempt municipal bonds specifically for the roughly $2,000 totally tax free (federal and state) income they generate a year. I bought these bonds after the same amount of money in CDs returned less than $500 of taxable income.
My question to you is this: Since these bonds are for a specific purpose of generating tax exempt income, would you consider them to be in the same asset class as the “bonds and bond funds” you warned about?
Terry Says
Absolutely! Exactly what I have been warning about! Illinois has the WORST bond rating of any state! Who gave you this crazy investment idea?
Remember, it’s not about the return ON your money, but about the return OF your money!
Check the price of these bonds. For sure you’ve already lost more on their value this month than the interest you could earn all year!
