Stick with audio not financial advice

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Posted by Barry (A) on April 6, 2016 at 18:33:44

In Reply to: Kiss Your Retirement Goodbye posted by geezerrocket on April 6, 2016 at 07:51:02:

You, my friend, should NOT be buying tax exempt bonds, or any bonds for that matter. You loose market value with increase risk of repayment and ratings downgrades of a bond. By the time there's a bankruptcy, it's way too late.

True, states can't declare bankruptcy, but maybe that's a problem. There is an argument that maybe that would be a good thing as it would make them more fiscally responsible and help them restructure their debts. Read about it below.

With the exception of PR, IL, NJ, and now LA, state credit ratings have generally been on the upswing since 2009. California still has problems, but has been improving. Unfunded pension liabilities and oil tax revenue exposure are problematic. So far, the sky is not falling. You may have greater risks if you live in one of these places since your taxes may go up and services could be cut however. This is why most states' GO bonds are AA rated.

By the way, it makes no sense to keep tax exempt bonds in a 401(k) as they are already tax deferred. You keep them in taxable accounts. I would be very surprised if any company offers tax exempt bond funds in their 401(k) program. They're a dumb idea in an IRA for the same reason.

http://www.bloomberg.com/news/articles/2016-01-21/the-case-f (Open in New Window)

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Follow Ups Full Thread

Topic - Kiss Your Retirement Goodbye - geezerrocket 07:51:02 04/6/16 (21)

Stick with audio not financial advice - Barry 04/6/1618:33:44 04/6/16 (0)

RE: Kiss Your Retirement Goodbye - Mr_Steady 17:39:08 04/6/16 (2)

RE: Kiss Your Retirement Goodbye - Rod M 20:13:03 04/6/16 (0)

Ahh! So THIS is the "end" Bullethead warned us of a while back... - Steve O 18:24:32 04/6/16 (0)

Heritage Foundation is not a reliable reader of tea leaves - Jay Buridan 11:30:19 04/6/16 (4)

RE: Heritage Foundation is not a reliable reader of tea leaves - Michael Samra 18:12:43 04/7/16 (3)

Greed and Welfare - Inmate51 21:35:40 04/7/16 (2)

RE: Greed and Welfare - geezerrocket 07:23:57 04/8/16 (1)

RE: Greed and Welfare - pictureguy 11:53:05 04/8/16 (0)

Elections have consequences - LWR 11:22:24 04/6/16 (3)

LOL... - mkuller 15:03:04 04/6/16 (2)

Free shit - LWR 15:35:08 04/6/16 (1)

I humbly don't agree. Many of us hold our noses and vote D because - jdaniel@jps.net 20:32:03 04/7/16 (0)

RE: Kiss Your Retirement Goodbye - Irishaudioboy 08:53:33 04/6/16 (0)

RE: Kiss Your Retirement Goodbye - mkuller 08:13:06 04/6/16 (5)

RE: Kiss Your Retirement Goodbye - geezerrocket 08:39:44 04/6/16 (4)

If your retirement portfolio... - mkuller 10:57:36 04/6/16 (3)

California, Illinois, - geezerrocket 14:33:07 04/6/16 (2)

Actually... - mkuller 14:55:48 04/6/16 (1)

RE: Actually... - geezerrocket 15:06:24 04/6/16 (0)

jeepers I hope not - mhardy6647 08:04:19 04/6/16 (0)

Follow Ups

Stick with audio not financial advice - Barry 04/6/1618:33:44 04/6/16 (0)

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