Municipal bonds, or “munis”, have always been a favorite investment for retirees. They’re safe, secure, and the yields are much more predictable. But in recent years, they’re predictability has faltered in the wake of an uncertain market making people a bit more squeamish about their retirement portfolios. If you’re nearing retirement age and are interested in moving your portfolio more toward munis there are some things to be aware of before doing so. Here are some strategies that will help you maximize your investments to better prepare for retirement.
- Do your research – Do you know what municipal bonds are and why they might be a good move for you? If you’re unsure about munis, do your research. Investinginbonds.com is an extremely valuable resource and it will allow you to form specific questions for your broker.
- Hire a specialist – Just like lawyers specialize in certain areas of the law, so do brokers and brokerage firms. You wouldn’t go to a foot doctor for problems with your heart and so it is with brokers. Seek out one who specializes in munis so they are able to use their expertise to help you reach your goals. Speaking of which…
- Be clear about your goals – What do you want from your retirement portfolio and how can municipal bonds get you there? It’s very important to understand this question before you start making any changes. It should be clear what rewards you’re expecting from this change and the possible drawbacks. Brokers will be able to help you with this aspect but it’s always better to be over-prepared than not in this arena.
When it comes to retirement planning the Boy Scout motto, “Be Prepared” comes to mind. You should always have a goal and a strategy in mind before heading into a broker’s office. This is your money and it should be invested and protected exactly the way you want it to be. You have worked hard for your retirement and it’s essential that you have total access and are able to enjoy it the way you planned all along. Municipal bonds may be just what your retirement fund needs to perform exactly the way you want.
This article was written on behalf of Smith Gilliam Williams & Miles, a leading Atlanta Law Firm located in Georgia. SGWM Firm specializes in everything from mediation to family law and has been providing exceptional service to their clients for decades.