need a strategy for my muni portfolio

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
ErikArd
Posts: 4
Joined: Fri Apr 16, 2021 9:43 pm

need a strategy for my muni portfolio

Post by ErikArd »

I’d like some guidance in deciding how I should think about my fed + state tax exempt muni bond portfolio. The market value has dropped of course but there you go, that’s what happens when rates rise. Fortunately I don’t need to sell any bonds anytime soon just to generate cash. But this new rate climate has spurred me to come up with a strategy, or at least a view, about whether I should start to wind down or at least tweak this portfolio.
The portfolio has little pieces of 45 muni bonds in it. 30% short term, 60% intermediate (5-12 yrs), 10% long (mainly 13-14 years). I’m 70, retired, 33% combined marginal tax bracket. Let’s assume for simplicity my marginal rate doesn’t change and that I’ll start needing cash from the portfolio in three years. Thoughts?
Post Reply