Municipal Money Market Rates

I currently have a municipal bond fund that is tax deferred. The performance is OK, and in the past, it was incredible. CD rates look very attractive now at 5.00% and more. I live in New York and I understand that taxes must be paid on the CDs. So I try to determine if 4.20% tax deferred or a CD of 5.20% after tax will give me the most money. I'm in the tax bracket the lowest. I would also like to know what dictates the performance of the Municipal Bond Fund, if the stock market is doing well what it usually means the performance of the Bond Fund will decrease?

Bryan gave you a good answer complete, but no. He had neglected one aspect of determining the Fund's performance. This fund expenditures. Normally, they run about 1.5% per year, but some funds are higher and some lower. These charges affect your performance.

I am a bit surprised by your comment that the Fund is tax deferred. Muniple bonds are not taxed at all by the federal government nor the state government to the extent that they contain obligations of the State of New York.

Here is a link that shows how to calculate tax return equivalent

http://allthingsfinancialblog.com/2006/10/20/how-to-calculate-tax-equivalent-yield/

The bond market is related to the exchange, but most often moves in opposite directions. The bond prices are made directly by the Fed funds rate that the Fed determines the course. The yield is calculated by taking the annual interest from the link and dividing by the current price. When a link first come on the market performance and interest rate will be the same, but as time goes on the price of the bond moves to reflect that current obligations are paid.

Hello

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However, the only investment I've really been pleased with the measure of real estate. Over the past 5 years, I bought 3 different properties (all tenants, and I do more than the mortgage payments on 2 fields).

The 3rd property I was using Carleton Sheets no money in the methodology (it is a real estate guru, and yes, his methods do not work!). You can buy a property for absolutely nothing (no money in your pocket). I paid over $ 500 for his course 3 years ago, and I've seen online for $ 9.95! This is a flight to $ 9.95 (I'm actually going to buy it for my friends for Christmas). It was presented on TV, then I am the website from there.

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You live in New York? Because if you do, then NY Munis are triple tax-free.

To calculate your taxable equivalent yield, add your marginal tax rate on income, subtract the .100 and then divide the result in the yield tax free. It is easier than it seems.

15% of the Fed. State + 5% = 20% (.20)

, 100 -, 20 = .80

4.2 / 80 = 5.25% In this case, the tax yield without fighting taxable yield of 5%.

Another thing to consider, if you sell your bond fund Muni, you can pay a capital gain on the shares themselves.

Also, I would say that the average yield and the long-term bond funds have little to do with what the Fed does. He may have some influence, but he does not move as much as bond yields big killer - inflation! Economic news has a very dramatic effect.