Choosing muni bond funds

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Re: Choosing muni bond funds

Post by inbox788 » Thu Feb 15, 2018 4:20 pm

dratkinson wrote:
Mon Feb 12, 2018 6:11 pm
The long answer. You want to learn about munis, pull up a chair.
LOL! Thank you for the dissertation. I've bookmarked the response for when I have a nice comfortable chair.

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Re: Choosing muni bond funds

Post by dratkinson » Fri Feb 16, 2018 2:25 am

Act in haste, repent in leisure.

Don't be too hasty. My first cut idea was just that... a first cut. You can probably do better. How? Get differing perspectives on your total retirement investing situation from others. Then choose the pieces best fitted to your situation to craft your (plural) investing game plan. How?

You (plural) will go into retirement as a couple/family. So you (plural) need a review of your total family retirement portfolio. You do that by requesting a forum review.

To benefit from the forum's insights, you must provide your information and ask your questions in a way that makes it efficient for the forum to answer your questions. This is why you need a new topic. (It’s inefficient to start this process >50 posts into your (this) current topic.)

Simple actions steps to ask for a retirement portfolio review.
--Pull up the sticky topic "Asking Portfolio Questions": viewtopic.php?f=1&t=6212
--Paste it into a Word document. Work on it offline.
--Start from the beginning and edit the Word document to include all of your (plural) information.
--It's easier than you may think as you just overwrite the document's existing information with your information. Kinda like "fill in the blanks."
--You (plural) will go into retirement as a couple, so the forum needs to know about your total family retirement investing. (All of your (singular) current investing information (including your inheritance and low risk tolerance), all of your spouse's investing information, your first cut at restructuring your investments, all of your questions.)
--Post it after you have included everything. (Omitted information = omitted suggestions.)

Put a meaningful title on it like "Help with restructuring our Fidelity retirement investing" (or whatever you like) to attract the attention of those most likely to provide the information you need.

A descriptive title will attract the attention of those who’ve already done this for themselves.

You will also attract the attention of those who know about Fidelity investments. (I don’t have any Fidelity investments.)

As a courtesy to those who want to help you, ALL of your information must be in your new topic’s first post. (Your current topic contains >50 replies and your information is scattered, making it hard for the folks who want to help, to do so. Hence the need for a new topic.)

As a courtesy to those who want to help you, your information should be in the expected format ("Asking Portfolio Questions") so they know where to look for your information.

After posting your new topic, post a link to it in this topic, so those following you here will find you there.

Disclosure. Remember I told you that I started by copying a known lazy portfolio that was not suitable for me. It worked, but caused problems and had to be changed. Luckily the market crashed about that time so I got to sell and TLH (tax-loss harvest) to make my changes, instead of paying CG (capital gains) tax to do so.

The market is currently rising, so hastily choosing the wrong Fidelity funds in taxable now, could result in paying STCG (short-term capital gains) tax to correct it later. (Act in haste, repent in leisure.)

So it's much better (more tax-efficient) to get your second opinions, first.

Old systems management joke: We don’t have enough time and resources to do it right the first time, but we have enough to do it over.
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

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Re: Choosing muni bond funds

Post by Theoretical » Fri Feb 16, 2018 3:18 am

BMBIX has done an admirable job of building a fund that's heavily pre-refunded and that has moved away in its holdings from exposure to high-risk states. It's been doing what almost no active bond fund does, which is to sacrifice yield for a safer return. It still has more bonds than I'd like in Illinois and Massachusetts, but it's far less exposed to New Jersey and Kentucky than almost any other muni fund. It's almost 10% of our AA.

The big risk is how it proceeds with the tax law changes to pre-refunded bonds where bonds refunded after 12/31/17 are no longer tax-exempt. That will make its portfolio decisions interesting.

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