WHY CHOOSE MUNICIPAL BONDS?

Investing in municipal bonds can:

• Provide tax-free dividends and lower your overall tax burden
• Improve your portfolio’s risk-adjusted returns
• Provide a useful alternative to holding cash
• Help buffer your portfolio from market volatility

INDIVIDUAL MUNICIPAL BONDS

Simply buying municipal bonds and holding them until maturity carries the risk of default, the expense of purchasing insurance, the potential for a loss of principal if sold before maturity, requires a knowledge of bond rating systems and faith in the reliability of bond ratings as well as trust in bond ratings companies etc.  Furthermore, issuers of over $350 billion of municipal bonds are delinquent in filing their financial statements which means there is a good chance that if there is a problem emerging that may lead to default it will not be disclosed.  Finally, with over 54,000 issuers of municipal bonds, it could take a lifetime just to review all the investment alternatives.

MUNICIPAL BOND FUNDS

We believe that in order to be successful at holding municipal bonds, an astute individual investor will always choose holding municipal bond funds over holding individual municipal bonds in order to take advantage of the expertise of seasoned portfolio managers and research teams and also to avoid the headaches and risks cited above. 

PROTECTING YOUR INITIAL INVESTMENT

The challenge when investing is municipal bond funds is how to limit the potential for a loss of principal and this is exactly what our Muni Fund Investor service provides.

The Muni Fund Investor service is an intelligent cash management system that generates higher rates of return than cash or other cash equivalents without a risk of significant loss of principal or high volatility.  We continuously analyze over 140 municipal bond funds and only select funds from the top 10% for our service.  The funds we select have a proven track records, with a history of increasing dividends.

The Muni Fund Investor service is designed to outperform:

• Money market funds
• Certificates of deposit (CD)
• Holding individual municipal bonds
•  Holding municipal bond funds
  
  

We achieve these results by owning a diversified portfolio of municipal bonds through the purchase of municipal bond funds when municipal bonds are rising in value and holding cash when municipal bonds are declining in value.  Historically, we are able to capture 20-30% of the tax-free dividends paid by the municipal bond funds we purchase.