When Is the Best Time to Buy Municipal Bonds?

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The best time to buy municipal bonds is when interest rates rise and the yield on bonds goes up. Look online or in a local newspaper to see how municipal bonds are performing with help from a licensed financial planner in this free video on bonds and investing.

Part of the Video Series: Bond Investing
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Video Transcript

My name is Bill Rae. I'm with Alumni Financial Services. I've been in the business of the finance world for well over 20 years and your question is when is the best time to buy municipal bonds. Well that is an excellent question. First of all a bond in the finance world if you will is a debt security in which an authorized issuer holds a holder a debt, a fancy way of saying I borrowed money, I owe it back to you and I agree to pay it in a certain amount of time with interest. Now municipal bonds or beauty bonds are liquid they can be bought and sold at any time and the market generally dictates the value so when is the best time to buy them? Well a general rule of thumb says that when interest rates rise the yield on bonds generally has to go up and that would be the best time to buy it if you are looking to hold them long term. Many places you can look to find out how the bonds are performing, Wall Street Journal, your local newspaper and on line. You can also call and talk to a broker. We also advise that you talk with a licensed adviser. My name is Bill Rae. I'm with Alumni Financial Services and as always we're here to help you build wealth.

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