CHAPTER 13
Municipal Trusts and Funds—Tax-Free Alternatives 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“A government is the only vessel known to leak from the top.”
Do I Need to Read This Chapter? • Am I in a high enough tax bracket to need tax-free alternatives? • Do I want to know more about municipal bond unit trusts? Municipal bond mutual funds? • Am I looking to invest in units as low as $1,000? t one time, tax-free benefits were available only to the well-to-do because any purchase of municipal bonds under $25,000 was considered an “odd-lot” amount and would cost you extra brokerage commissions (as well as being harder to sell later). Under these conditions, the municipal bond market was strictly a high-priced investor’s playground, and the cost of establishing a diversified portfolio of many municipal bonds was extraordinarily high. It was to remedy this situation that the municipal bond unit trust and the municipal bond mutual fund were developed.
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