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The municipal bond market experienced a dramatic sell-off around the time of the election, with more than $10 billion departing muni funds in November.2 President Trump’s promise for more infrastructure spending and lower taxes has made the market for these bonds less appealing.

For one thing, many investors are attracted to bonds for their federal tax-free interest income. However, with the prospect of income tax rates dropping over the next four years, this feature may not offer as much value. Second, more government spending means the issuance of new bonds to fund infrastructure projects and, with the recent rise in interest rates, new bonds will likely offer higher yields than existing ones. Furthermore, the current municipal interest tax exemption could even be reduced or cut as a part of tax reform negotiations going forward.

Municipal bonds provide a steady stream of income, which can be an important factor for retirees. Also remember that older bonds will continue to pay out until maturity.

Bond obligations are subject to the financial strength of the bond issuer and its ability to pay. Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial situation and the potential role of investments in your financial strategy.

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Ryan Keapproth

Ryan Keapproth

Retirement Planner

Ryan is dedicated to serving clients to achieve their retirement goals. Ryan’s holistic approach centers on wealth management strategies with a focus on income planning throughout retirement. As a Financial Advisor, Ryan is an Investment Adviser Representative (IAR), life and health insurance licensed and a Certified Tax Preparer. Ryan is a graduate of the University of Minnesota, with an Accounting and Finance major.

Ryan is a lifelong Minnesotan originally from Woodbury and currently residing in Bloomington with his wife, Riamae, and their rescue Terrier Beagle mix, Douglas. He and his family are avid travelers in their free time. Ryan enjoys playing golf and poker, and describes himself as a major foodie enjoying new restaurants around the cities whenever possible. He is a sports fan especially when the Vikings and Timberwolves are playing.