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Face Value vs Mkt Value

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ByJohnnyG

L1: Face Value vs Mkt ValueIf the face value of municipal bonds in my portfolio are 100k and the market value is 90k. If I use the face value of the bonds for my IRA balance calculations will this be a “bust”? Thank you2010-02-19 16:02, By: johnnyg, IP: [66.232.90.254]
L2: Face Value vs Mkt ValueThe market value of the bonds is $90,000 – the face value is immaterial and has nothing to do with a SEPP calculation.Now a question for you… who suggested that you place municipal bonds in an IRA? A tax-free investment has no place in an IRA.2010-02-19 16:35, By: Gfw, IP: [216.80.125.206]

L3: Face Value vs Mkt ValueI agree with GFW … sorta … that tax-free, muni bonds are not appropriate to fund an IRA. However, occasionally there are times when muni bonds have a higher yield than other bonds. In this case your are buying muni bonds for the yield and not for any growth potential. If you do use muni bonds in your IRA, be vigilant to the time whenconditions change and you willneed to sell them and replace with corporate or treasury bonds.Jim2010-02-19 16:54, By: Jim, IP: [70.167.81.119]

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