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Granite Pacific Financial – Bonds

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What is a stable for tax free income that is more stable than bonds?

 

Municipal bonds have risk:

Interest Rate Risk (interest rates rise, the value of your bond drops)

Lack of Capital Growth (only your invested dollars are returned at the end of the term) your money doesn’t grow to offset inflation.  At only a 3% inflation rate, your money is devalued by 35% in only 10 years.  Can you afford to have no growth?

Money Is Not Liquid (you have to sell to get your funds back)

Length of Commitment (to get 6% today you have to go “long” which means your money is commited for 10, 20+ years and usually the bonds offering that rate are not insured).

Uninsured Bonds Are Risky & Could Default

Insured Bonds Offer Lower Rates

THERE IS A BETTER ALTERNATIVE…A PLAN THAT OFFERS TAX-FREE INCOME, GROWTH, AND LIQUIDITY!

 

J. F. Ranhofer
661.253.2030
granitepacificfinancial@hometownstation.com