Re: Suggestions for mid term savings/investments?

Sandra Loosemore <noreply@[EMAIL PROTECTED]
> wrote:

> I suggest the OP look at muni bond funds, which are an exceptionally
good
> deal right now.  VMATX is currently yielding 4.19%; since that's exempt
> from both federal (28%) and state (5.3%) tax for me, that's equivalent
to
> a 6.28% taxable yield.

This is a good suggestion. But we don't know the original poster's 
marginal rate. Assuming he pays enough taxes to benefit from the tax 
exemption, another investment that's more aggressive than cash but less 
so than equities is a closed end munibond fund. I own BYM, which yields 
more than five percent at its current price. Beware, however, that most 
closed end funds use leverage and that adds volatility that you don't 
get with an unleveraged, open-end munibond fund.

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