Aug. 28 at 2:30 PM
$BOX or munis?
$NVDA or munis?
$MSFT or munis?
Just had a great conversation with friends at
$MS. Everyone is chasing the next big move in stocks, but munis deserve a serious look right now.
In the last week I moved
$2M+ into municipal bonds. About
$7K/month in income, with the bonds I chose exempt from federal and CA state income tax.
Yes, I’m risk averse. Could I make more in stocks? Absolutely. But a 4%+ tax-free yield can be equivalent to 6%+ taxable for someone in a high tax bracket.
That’s ~
$84K/year in tax-advantaged cash flow without worrying about earnings, multiples, guidance or the next correction.
I still own stocks. This isn’t stocks vs bonds forever. It’s about risk/reward TODAY.
Sometimes the best investment isn’t the one with the biggest upside. It’s the one that pays you to sleep well.
So what do HNW folks do with this cash flow. Stream the flow to pay taxes across real estate holdings.
Such a beautiful investment vehicle.
