Long touted as the ultimate secure choice for investors seeking tax-free income, some municipal bonds may be creeping up the risk ladder according to an article which appeared online yesterday at money.cnn.com.
In his article, "Is there a muni bomb in your portfolio?," staff writer David Ellis reports that a number of cities have had their credit ratings cut. As a result, especially when coupled with the current general economic malaise, some municipal bonds could end up "virtually worthless."
Not good news for people who are counting on that money.
Even bazillionaire Warren Buffett (who knows a thing or two about money) is quoted as saying municipal debt woes could become a "terrible problem" in the future.
Click [HERE] to read "Is there a muni bomb in your portfolio?"
This article caught my eye since I can recall, over the years, many people who settled their personal, physical injury claims rejecting the income tax-free structured settlement option available to them in favor of cash so they could buy tax-free munis which they perceived as safer.
I will not argue against the wisdom of choosing something viewed as so historically safe but I hope this article provides some perspective for those who think munis are always a slam dunk. Structured settlements offer a sensible alternative.
Structured settlements remain an excellent choice for those who qualify and seek guaranteed, income tax-free cash flows! Please call anytime I can help you or anyone you know evaluate ALL the choices available before settling a personal, physical injury claim.