About 20 years ago, in my early years of being a broker, I had a coworker who built his practice on selling tax-free municipal bonds. He was a multi-million dollar producer who only had to come in on Mondays when our Bond Desk had new issuances,
His pitch: (keep in mind, interest rates were higher)
If you give me $5 mill (after taxes), I'll get you $250k TAX-FREE. Is it worth a listen?
You would make $250k a year (no taxes) AND you have your $5 mill virtually risk-free.
Our state is AAA rated, so default chances were almost nil.
Nowadays, yields for those munis are ~4 1/8-4 1/4.
So instead of 50k per year per 1 million, you'll realize ~41,500.00 TAX FREE
I await your call if one of you TER friends wins the next drawing.
