Many investors think their municipal bonds are safely tax-free—but the IRS’s de minimis rule can turn that “tax-free” income into taxable ordinary income at maturity. As year-end approaches, now’s the time for CPAs and advisors to review discounted bond holdings before this hidden tax trap catches clients off guard. Read more in our latest article.
Discover Arkansas Income Advantage, a tax-free bond portfolio. Ed Mahaffy is a financial advisor at ClientFirst Wealth, Legacy & Estate Planning in Little Rock, Arkansas.
The Week In Perspective combines market activity, financial events, commentary and analysis for individual investors—Check-in weekly for the most current happenings.
Just like in the stock market, greater uncertainty has led to swings in the bond market. These moves, driven by tariffs and a dispute between the White House and the Fed, have pushed interest rates and bond yields higher. While short-term volatility can often lead to unexpected results, it's important to remember that periods like these occur periodically, even if the causes are different each time. For bond investors, especially those who rely on their portfolios for income, the current environment may present both challenges and opportunities for their financial plans.
Often, when contacted by a prospective client, the first question they ask is, “Are you a fiduciary?” Although this is excellent progress, the following question is equally important and one that many financial advisors may prefer to avoid, “Are you a ‘full-time’ fiduciary?”
A solid personal finance strategy is imperative to long and short-term stability and security. Think of your financial structure as the sturdy foundation of a house—without it, the entire structure is vulnerable to collapse. A well-balanced financial plan equips you with the resilience to navigate unpredictable challenges, manage resources effectively, and work toward achieving your goals. Every consumer should understand and implement four key components of a robust financial structure: Budgeting, Saving, Debt Management, and Investing.