Stan Richelson, co-founder of the Scarsdale Investment Group, was quoted in “529 Rebels: Alternative ways to save for college,” Reuters Business and Financial News (Kayrn McCormack, May 28, 2013) concerning the advantages of high quality municipal bonds in lieu of 529 plans to save for children’s college. There are a number of reasons given for [...]
About Hildy
Dr. Hildy Richelson is President & Founder of the Scarsdale Investment Group, Ltd., a Registered Investment Advisor. She is a nationally recognized bond advisor who restricts her practice to the design and construction of bond portfolios. Hildy writes for Advisor Perspectives. She has been profiled in Smart Money and quoted as a bond expert in such publications as the Wall Street Journal and Money Magazine. Hildy Richelson and Stan Richelson co-author a free commentary about bonds available from this website under Articles, and have previously authored four books on bonds including the bestselling award winning Bonds: The Unbeaten Path to Secure Investment Growth, published by Bloomberg Press. Hildy has been interviewed on TV and radio including Bill Griffith on Power Lunch on CNBC, and by Mary Fay on Money Matters on CNN. Dr. Richelson received her Ph.D. from Syracuse University.
What is Your Personal Inflation Rate?
Though inflation is rising very slowly – 1.4 percent in May of this year – and there are hints of possible deflation, we still worry what will happen if inflation takes off. However, a better look at the Consumer Price Index (CPI) tells us that the wealthy are not affected by its measurements in the same way [...]
Paying Taxes on Municipal Bonds: Acquisition Premium
You may not know that there might be a way to reduce the amount of taxes you pay on interest payments you receive from bonds purchased at a premium to face value, and from imputed interest on zero coupon bonds. When you pay an acquisition premium for a bond, the interest payments you receive actually [...]
Premium or Discount Bonds? That is the Question
KEY POINTS: Premium Bonds: Hold value better Partial return of premium with interest payments Can be sold at a profit More likely to be called before the maturity date Reinvestment risk in low interest rate scenario Discount Bonds Preferred by retail clients, along with par bonds. Lower cash flow, but interest payments may be only interest due. [...]
Pricing TIPS is a Chess Game
Question: If the big reason for the appreciation in TIPS is that they are institutionalized and that buyers-have bid up the price based on general U.S. T-bond levels (rather than inflation alone, then it might be wise to sell them. Is this the whole story? What are the factors in pricing TIPS? Answer: There are at least [...]
Concerned about Inflation? What about TIPS (Treasury Inflation Protected Securities)?
Buying Considerations Many investors are sure that higher inflation and higher interest rates are right around the corner. As a result we have had a number of inquiries as to whether, in 2012, a bond investor should buy Treasury Inflation-Protected Securities (TIPS). Investors like the idea of TIPS because they will appreciate if there is [...]
Like Water, Like Cash Flow
By Stan and Hildy Richelson November 22, 2011 There are two times in a man’s life when he should not speculate: When he can’t afford it, and when he can. —Mark Twain Like Rodney Dangerfield, bonds get no respect. Their advantages of predictable growth and cash flow are woefully underappreciated. Like our [...]
Ditch the Casino of Hope and Fear
Part of our behavioral makeup is making financial decisions based on inaccurate or incomplete information. For example, suppose you were offered two investment choices: a volatile investment that might return 10 percent or more per year; or a more conservative investment returning 4.5 percent per year. Both might not meet your future retirement needs. Which [...]
Pay premium price for high coupon high quality bonds?
You want a good return on your high quality bonds, but wonder about the wisdom of paying premium prices for bonds that carry coupons of 4.5-5.5%. Here are our thoughts about the pros and cons of premium bonds that we shared with one of our clients: Question: “Please discuss buying bonds at a premium in the [...]
Why Some Moral Obligation Bonds are Like Farm Raised Atlantic Salmon
The word moral means the rules of right conduct. Municipalities issue moral obligation bonds, which have a specific definition in the law. According to Black’s Law Dictionary, a moral obligation is “a duty which is valid and binding in conscience and according to natural justice, but it not recognized by the law…”[i] Many people purchase [...]
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Designed to educate novice and sophisticated investors alike, as well as to serve as a tool for financial advisers, BONDS explains why and when bonds can be the right choice. Buy now »
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Like Water, Like Cash Flow
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Premium or Discount Bonds? That is the Question
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Pricing TIPS is a Chess Game
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Pay premium price for high coupon high quality bonds?
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Why Some Moral Obligation Bonds are Like Farm Raised Atlantic Salmon
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529 Rebels: Alternative ways to save for college
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What is Your Personal Inflation Rate?
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Paying Taxes on Municipal Bonds: Acquisition Premium
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Premium or Discount Bonds? That is the Question
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Pricing TIPS is a Chess Game
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Thomas B. Owen: I bought your Book "BONDS" IN 2007 and was very ...
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ws: I believe you've heard the views of Fink from Bla...
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