CA Muni Bonds

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Apr 18, 2007 2:54 pm

Im looking at placing $500K for a client. I don't do any real bond business.


Would a Ladderd Portfolio or a Mutual Fund work better?


Cheers!

Apr 18, 2007 3:23 pm

Is the 500k their entire net worth?  Does it need to be spread out for retirement or is it a small piece of their current portfolio? How many years out are they from retirement or needing income from it? Are they worried more about protecting their income or growing it?  What tax implications are they worried about?


   If they are a few years out from retirement a laddered Muni bond strategy will give them the opportunity for continual tax free income and returned principal every year in retirement. They can choose to reinvest the principal or take it and spend it.  Some high net worth clients build muni ladders with 100k coming due every year for 30 years.  It can give them approximately 120k in interest and 100k in maturing principal each year in retirement, all guaranteed and all untaxable.  If the bonds are AMT free as well then they can really benefit.  Of course, If they had a few years out from retirement I would be only allocating a portion of the money to muni's (again, very boring investment but guaranteed principal and interest for some of your money) and the rest to a balanced mutual fund portfolio.

Apr 18, 2007 3:55 pm

good info. thank you!

Apr 18, 2007 4:30 pm
Vin Diesel:

Im looking at placing $500K for a client. I don't do any real bond business.


Would a Ladderd Portfolio or a Mutual Fund work better?


Cheers!



A variable annuity will be the best thing.

Apr 18, 2007 6:03 pm
Vin Diesel:

good info. thank you!





Choose a lowcost fund, possibly a muni CEF. You don't have the time nor
skill to manage fixed income portfolio's for lots of different people.

Apr 29, 2007 12:12 pm
Bobby Hull:
Vin Diesel:

Im looking at placing $500K for a client. I don't do any real bond business.


Would a Ladderd Portfolio or a Mutual Fund work better?


Cheers!


A variable annuity will be the best thing.



It would be the best thing for YTB - Yield to Broker.

All recommendations should be made to benefit the client.  Care to elaborate why a VA would be "the best thing"?

Apr 29, 2007 12:39 pm
skippy:
Bobby Hull:
Vin Diesel:

Im looking at placing $500K for a client. I don't do any real bond business.


Would a Ladderd Portfolio or a Mutual Fund work better?


Cheers!



A variable annuity will be the best thing.




It would be the best thing for YTB - Yield to Broker.

All recommendations should be made to benefit the client.  Care to elaborate why a VA would be "the best thing"?


Care to explain how the YTB is better than what the broker would make over 7 years in another strategy? You sound bitter about what others make. We had nothing to do with you choosing to work for a bank, where they haircut the commissions then pay you a crappy payout AFTER the haircut.

Apr 29, 2007 1:25 pm

I wasn't complaining about my employment or payout haircuts in this thread.  I was asking why a VA was "the best thing" for the client.  Try not to change the subject in threads when you are trying to just "deflect" the question.

The fact is, is that the OP didn't give all the facts to have a suitable recommendation.  You just blatantly said that "A variable annuity would be the best thing."

The best thing for who?  THAT'S the question I wanted answered.

Basically, I DON'T CARE what I sell or what I earn, if I can help the client and gain referrals from that client.

Apr 29, 2007 1:37 pm
skippy:

I wasn't complaining about my employment or payout haircuts in this thread.  I was asking why a VA was "the best thing" for the client.  Try not to change the subject in threads when you are trying to just "deflect" the question.

The fact is, is that the OP didn't give all the facts to have a suitable recommendation.  You just blatantly said that "A variable annuity would be the best thing."

The best thing for who?  THAT'S the question I wanted answered.

Basically, I DON'T CARE what I sell or what I earn, if I can help the client and gain referrals from that client.


I'm sure that you're a wonderful clerk.

Apr 29, 2007 1:54 pm

I'm sure you're a wonderful politician - avoiding the REAL questions.