Is Vcaix a good fund?
About VCAIX The Vanguard California Intermediate-Term Tax-Exempt Fund falls within Morningstar’s muni California intermediate bond category. Morningstar says, “Amongst Golden State choices, this fund provides a high-quality portfolio at an attractive price.”
Is Vcaix tax free?
The income is expected to be exempt from both federal and California personal income taxes. The fund is intended for California residents only.
What are California municipal bonds?
A California municipal bond is a bond issued by cities, local governments or their agencies within the state of California. California municipal bonds finance investments in roads, schools, parks, public utilities, housing, publicly owned airports and seaports, levees, public facilities and other crucial construction …
Is CMF tax free?
CMF provides broad exposure to California municipal bonds. The fund only holds USD-denominated debt issued in California that is exempted from US and California income taxes and the alternative minimum tax (AMT).
Are municipal bonds a good retirement investment?
Municipal or corporate bonds are a great alternative for investors who want to create a reliable stream of income, particularly during their retirement years. Highly-rated bonds are by their nature very safe investments compared to almost any other alternative and especially compared to stocks.
How Safe Are California muni bonds?
Muni bonds may offer security and tax-free portfolio income with relatively low default risk. These assets typically pay off for investors in higher tax brackets versus lower-income retirees. However, it can be tricky to manage individual muni bonds due to interest rate and credit risks, financial experts say.
Are California municipal bonds a good investment?
On the plus side, highly-rated municipal bonds are generally very safe investments compared to almost any other investment. The default rate is tiny. As with any bond, there is interest rate risk. If your money is tied up for 10 or 20 years and interest rates rise, you’ll be stuck with a poor performer.
Are muni ETFs safe?
While many of these bonds are rated investment grade by ratings agencies, indicating a relatively low degree of credit risk, they are not risk free. A municipal bond ETF can help to reduce risk through holding debt issued by a broad range of states, municipal governments, or agencies.
How safe is Vanguard?
The company is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Vanguard is considered safe because it has a long track record and it is overseen by top-tier regulators. You can open an account at Vanguard if you live in United States.