Financial Planning News
Sun, 13 Jan 2013
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Morningstar's Miriam Sjoblom discusses how to gauge whether a muni fund is more apt than a taxable- bond fund , yield risks and other key focus points, and some of her muni -fund recommendations.
Bonds are a better option than cash and less volatile than stocks, but investors should be mindful of headwinds and possibly rethink their fixed-income allocations, says Morningstar's Christine Benz.
Increasing demand, tightening supply, and expectations for higher rates and inflation should bring better muni returns in the coming years, says Nuveen's John Miller, Puerto Rico notwithstanding.
Munis have faced both interest rate and credit risk pressures, but at current levels, this varied asset class is worth considering, especially for those in higher tax brackets, say Morningstar's Candice Lee and Eric Jacobson.
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