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☆ It’s prime time to lock in yields on this tax-free income play, UBS says
▼ + stars: | 2024-04-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

UBS doesn't see the Federal Reserve embarking on rate cuts until September — and that means now is the time to snap up tax-free municipal bonds. Bond yields and prices move inversely, so a decline in rates will come with price appreciation for the underlying issues. "Against that backdrop, we believe that yields on quality municipal bonds look attractive at current levels," wrote UBS Wealth Management senior municipal bond strategist Kathleen McNamara in a report last week. The kicker of tax-free income Muni bonds are generally backed by the full faith and credit of the issuer, which makes them less of a default risk compared with corporates. Large diversified municipal bond funds can be cheap, but state-focused funds tend to be a little more costly.

Persons: Kathleen McNamara, McNamara, FKTFX Organizations: UBS, Federal, UBS Wealth Management, Bond, SEC, Vanguard California, Franklin, Franklin California Tax, Income Fund, Muni Bond ETF, Vanguard New Locations: There's, New York , California, New Jersey, California, Franklin California

☆ Vanguard launches two new ETFs to hit this sweet spot of tax-free fixed income
▼ + stars: | 2024-02-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors with a focus on tax-free income have two new choices to consider from Vanguard as the asset manager launches a pair of municipal bond exchange-traded funds. Tax advantages The biggest selling point for municipal bond funds is the tax-free income they provide. VTEC follows the S & P California AMT-Free Municipal Bond Index, while VTEI tracks the S & P Intermediate Term National AMT-Free Municipal Bond Index. However, in November, $2.8 billion in assets flowed into intermediate-term muni bond funds, followed by another $2.3 billion in December, Morningstar found. said Foos of municipal bond funds.

Persons: Beth Foos, there's, VTEI, Jeffrey Johnson, Johnson, Morningstar, it's Organizations: Vanguard, California, Bond, Federal Reserve, Morningstar, York Life Investments, Free Municipal Bond Index, Free Municipal Bond, muni, Treasury Locations: California

☆ The Gems Hiding in Plain Sight in the Treasury Market
▼ + stars: | 2023-10-20 | by ( Jeff Sommer | More About Jeff Sommer | ) www.nytimes.com time to read: 1 min

You didn’t have to be a financial wizard to get a safe return of more than 7 percent on your money for decades to come. All you had to do was buy a 30-year U.S. Treasury bond in the last nine months of 1994. There were treasures elsewhere in the investment-grade bond market. Tax-free municipal bonds were paying more than 6 percent, and corporate bonds carried rates that were even higher. While interest rates have risen appreciably, I’m not confident that we are experiencing a 30-year peak with bargains galore, as the fortunate bond buyers of 1994 did.

Organizations: Treasury

☆ 'Higher for longer' isn't just about rates: Here's how to play elevated everything
▼ + stars: | 2023-10-14 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

Each "higher for longer" item carries investment implications. Here's a look at how each category breaks down: Interest rates "I do subscribe to the new moniker, 'higher for longer.' That statement came from someone who nevertheless thinks the central bank doesn't have to take rates any higher than where they are now. Defense spending Geopolitical tensions, such as the wars in Ukraine and Israel, as well as the "cold war in Asia," should lead to an increase in defense spending around the world. In 2022, global defense spending hit a record $2.2 trillion, Quinlan said, citing Stockholm International Peace Institute data.

Persons: Joseph Quinlan, Merrill Lynch, Quinlan, Patrick Harker Organizations: Federal Reserve, Bank of America Private Bank, Philadelphia Fed, Investors, Defense, Stockholm International Peace Institute Locations: Israel, U.S, Ukraine, Asia, Stockholm, Washington

☆ These short-term muni ETFs can give investors a healthy tax-free yield
▼ + stars: | 2023-03-30 | by ( Jesse Pound | ) www.cnbc.com time to read: +5 min

Municipal bond funds can be particularly attractive to investors who face a high tax burden, because their payouts are tax exempt. The new funds haven't been active long-enough to show an official yield, but the more established iShares Short-Term National Muni Bond ETF (SUB) has a tax-equivalent yield of 4.74%. Another factor in favor of municipal bonds is the uncertain economic environment and fear of a possible recession. The BulletShares fund family from Invesco offers several different muni funds with different maturity target dates for investors looking for more specific time-frames. That group expanded with the Invesco BulletShares 2032 Municipal Bond ETF (BSMW) , which launched on March 1.

☆ What to do with your money now that the Fed just raised rates for the ninth time
▼ + stars: | 2023-03-22 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

“But the average credit card rate is now at a record high above 20%, auto loan rates are at a 12-year high and mortgage rates are still north of 6.5%. But online high-yield savings accounts now offer rates as high as 5%, well above the 0.23% national savings account average, according to Bankrate. Another high-yield savings optionGiven today’s still-high rates of inflation, Series I savings bonds may be attractive because they’re designed to preserve the buying power of your money. Your credit card debt: Minimize the biteIf you’re carrying credit card debt, expect to see a hike in the rate you pay within a few statements. “Credit card rates are at record highs and still rising.

☆ After the Fed’s latest move, how come you’re still not getting a higher rate on your bank savings?
▼ + stars: | 2023-02-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +10 min

So how come you’re not getting a higher rate on your bank savings? Another high-yield savings optionGiven today’s still-high rates of inflation, Series I savings bonds may be attractive because they’re designed to preserve the buying power of your money. For the week ending January 26, the 30-year fixed rate mortgage averaged 6.13%, well above where it was a year earlier, at 3.55%. So, if you’re close to buying a home or refinancing one, lock in the lowest fixed rate available to you. The variable rate on a home equity line of credit or a fixed rate on a home equity loan will rise because their formulas are directly tied to the Fed’s rates.

☆ Jeff Erdmann has been the best wealth advisor in the US for 7 years running. The Merrill Lynch pro told us how he's keeping clients' money safe with a recession on the way.
▼ + stars: | 2023-01-31 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

Forbes has named Jeff Erdmann the best wealth manager in the US every year since 2016. Erdmann's group at Merrill Private Wealth Management oversees $14 billion in assets. Erdmann, who is coming up on his 40th year at Merrill Private Wealth Management, has been named the best wealth manager in the country by Forbes every year since 2016. In stocks, Erdmann says he remains committed to dividends and dividend growth. Erdmann says allocating to the right sectors is vital, and right now, it's not clear what parts of the market offer the best long-term opportunities.

☆ What to do about the highest interest rate in 15 years
▼ + stars: | 2022-12-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

In its last policymaking meeting of the year, the Federal Reserve on Wednesday raised its benchmark interest rate for the seventh time in a row, to a range of 4.25% to 4.5%. Otherwise, any remaining balance will be subject to a new interest rate that could be higher than you had before if rates continue to rise. That said, “don’t jump into a large purchase that isn’t right for you just because interest rates might go up. If that’s not possible, consider paying off that balance by taking out a HELOC with another lender at a lower promotional rate, McBride suggested. The floating rate is tied to a short-term benchmark rate, such as the fed funds rate, so it will go up whenever the Fed hikes rates.

☆ What rising interest rates mean for your credit, loans, savings and more
▼ + stars: | 2022-11-02 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

“Interest rates have increased at the fastest pace in 40 years,” said Greg McBride, chief financial analyst at Bankrate.com. They’re offering far higher rates – with some topping 3% currently – and have been increasing them as benchmark rates go higher. At the most recent auction in October, for instance, the 5-year TIPS had an interest rate of 1.625%. Home loans: Lock in fixed rates nowMortgage rates have been rising over the past year, jumping more than three percentage points. That said, “don’t jump into a large purchase that isn’t right for you just because interest rates might go up.

☆ What rising interest rates mean for you
▼ + stars: | 2022-09-21 | by ( Jeanne Sahadi | Cnn Business | ) edition.cnn.com time to read: +11 min

"Credit card rates are the highest since 1995, mortgage rates are the highest since 2008, and auto loan rates are the highest since 2012. Here are a few ways to situate your money so that you can benefit from rising rates, and protect yourself from their downside. "Less debt and more savings will enable you to better weather rising interest rates, and is especially valuable if the economy sours." That said, "don't jump into a large purchase that isn't right for you just because interest rates might go up. "It's not just rising rates and inflation, there are geopolitical concerns going on... And we have a slowdown that may lead to a recession or maybe it won't...

☆ What rising interest rates mean for your credit, loans, saving and more
▼ + stars: | 2022-09-21 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +11 min

“Credit card rates are the highest since 1995, mortgage rates are the highest since 2008, and auto loan rates are the highest since 2012. Home loans: Lock in fixed rates nowMortgage rates have been rising over the past year, jumping more than three percentage points. That said, “don’t jump into a large purchase that isn’t right for you just because interest rates might go up. For example, financial service companies can do well in a rising rate environment because, among other things, they can make more money on loans. Bonds: Go shortTo the extent you already own bonds, the prices on your bonds will fall in a rising rate environment.

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