Clients concerned about market volatility often prefer more conservative fixed-income investment strategies. There are many choices to consider: taxable or tax-exempt bonds; Treasury Bills or inflation-indexed bonds; and direct purchases, exchange-traded funds, or mutual funds. This course will explore the changing economic environment, various fixed-income strategies, and their taxation.
Companion course: Tax Aspects of Stock Investing
Learning Objectives
- Determine the investors' goals and the interest-rate and economic outlooks
- Recognize how interest income and capital gains from fixed-income securities transactions are taxed
- Identify the role fixed-income securities play in a diversified portfolio and how they are taxed at the federal and state-levels
Major Topics
- Active versus passive investing
- Taxable, tax-exempt, and deferred-tax bonds and the net investment income tax
- The tax treatment of bonds purchased at a discount or premium
- Bond swap and U.S. Savings Bond strategies
