I subscribe to Fidelity alerts for municipal bonds and this week I got what looks like a great one. This deal isn’t as good as the last one I signed up for at 7.25% tax equivalent yield but it’s not too bad at 7.16% tax equivalent yield.
These municipal bonds are part of my new tax strategy to keep my taxes lower so I buy them in my taxable brokerage account as the interest earned is tax free. I now have over $55,000 in munis and my plan this year is to grow them to $100k if the stars align right.
This particular bond is issued by Sealy, Texas. I like buying munis from Texas because it is expected to be the most populous state by 2040 so I hope this will translate into a lower chance of default as the tax base grows for the state. This bond is callable and the one I bought is first callable in 2035.
I also dollar cost average into a couple of Municipal Bond ETFs: NEA and MLN. This is for added diversity.
If you like this bond, the settlement date is March 18, 2025 and the minimum investment is $5,000 so better hurry!
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Are you investing in municipal bonds? Let me know in the comments below!