Option Millionaires

[Cstern71]

The most important thing you will want to consider is when interest rates start to rise in 2014 or so. It has an inverse relationship with the price you will pay for the bond. For example, I looked a AAA municipal bond selling for $120 with par at $100. They are selling for a premium because the yields from bonds are far better than anywhere else. If the fed started raising rates, that $120 you paid will now start selling for less, maybe $110. You either have to be prepared to get out of bonds in the next year or so, or hold them til maturity and receive par value. Of course nobody knows what will happen in the next 10 years, so its all a judgement call. Municipals are tax exempt also.