Funds will begin paying out their 2023 distributions this month which could lead to a tax bill for your clients. While capital gains distributions will likely be lower this year than in recent years, interest income is expected to be higher.
We believe municipal bonds boast several key factors that position them as an attractive asset class in general, but especially so when markets are volatile.
From 2008 onward, U.S. market returns have been strong and consistent, and 2021 was no different, with the S&P 500 returning a solid 29%.
Limited supply and high demand for high-yield municipal bonds may adversely impact an investor’s financial position. Plan now for potential client conversations about exposure to lower quality tax-exempt securities.
Here’s how the SECURE Act may impact your clients. Plan now for these conversations.