Kiawah Golf Investment Seminars

Tax Free, Municipal Bonds Yielding nearly 7%. Interested?

Submitted by The Investment Shadow | RSS Feed | Add Comment | Bookmark Me!

Of course you should be interested!

There are several reasonable explanations for recent Municipal Bond price weakness: Higher interest rates expected; equity portfolio window dressing; weakness of state government treasuries; profit taking in municipal CEFs; speculation about proposed tax code changes; illiquidity of individual bonds; irrational investor fear.

There are at least as many excellent reasons why investors should be viewing this weakness as a buying opportunity --- in fact, every emotional or speculative issue that reduces bond prices creates new buying opportunities.

Lower prices and higher yields are always good news for income investors. Managed Closed End Funds are the most liquid and efficient means to take advantage of new opportunities to increase the productivity of your income portfolio.

Contact Steve for a website to use to construct a buy list Closed End Funds to check out for appropriateness --- but only after you read this article:

The CEFs I'm talking about are all NYSE listed, actively managed by knowledgeable professionals, and included in Market Cycle Investment Management Portfolios. The current yield on many of these closed end funds is hovering around 7%, priced at discounts from their NAV of roughly 6%, and comprised of well over 100 individual issues. Most positions represent  less than 2% of their respective portfolios.

These same portfolios were yielding less than 6% a year ago. What a great time either to start or to upgrade your tax free, home made, beyond-your-own-lifetime, annuity program.

Contact Steve to open an MCIM portfolio with 30%, 50%, or 70% invested in Muni CEFs, including some that hold insured and ATM-exempt issues.


Click here to obtain the official Market Cycle Investment Management Brochure

Kiawah Golf Investment Seminars
3912 Betsy Kerrison Pkwy
Johns Island, SC 29455
Phone (800) 245-0494 • Fax (843) 243-8509
Contact Steve directly for additional information: 800-245-0494
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Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

Please join the private article mailing list or Call 800-245-0494 for additional information

MCIM Self Directed 401k & IRA Programs

Take a free tour of a professional investment managers' private SEP IRA program during eight years surrounding the financial crisis:


In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only IGVSI companies, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 

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Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.