Where the Risk Is (And Isn't) In Muni Bonds

I thought this was useful.

Where the Risk Is (And Isn't) In Muni Bonds      by Annalyn Censky      CNN Money, March 3, 2011

http://money.cnn.com/2011/03/03/markets/bondcenter/treasuries/index.htm?eref=mrss_igoogle_business

The entire argument, in my view, is an argument for funds and experts – diversification.  States and cities are just not going to default in significant numbers – so don’t buy just one city.  The key risks are non-profits and short term volatility.  If an investor uses a reputable fund, high risks should be avoided and higher rates should easily cover defaults.

Anyway, N and I still have a vast hunk of our assets in bonds – around 45%, down from 50% – and I don’t pick ‘em.  If you live on your assets, the money has to be someplace.