Nuveen Tax Free Income Exempt from federal and state income tax

[mrmarket]

From: Austin Dutton [mailto:[email protected]]
Sent: Wednesday, April 01, 2009 11:57 AM
To: Austin Dutton
Subject: Nuveen Tax Free Income Exempt from federal and state income tax

Trade date 4/27 settles 4/30 4 STATE SPECIFIC TAX FREE IPO’S MONTHLY INCOME AVERAGE CREDIT QUALITY A+
Tax free Income – Exempt from federal,state and local income tax (New York City)
NO LEVERAGE
Average Credit Quality A+
NYSE LISTING - $15 per share NEW YORK - NYV – Triple tax exempt – Anticipated yield 5.10 TO 5.40%
Monthly Income – Cash or Reinvest PENNSYLVANIA – NPN Double tax exempt = 5.20 to 5.50%
Asset class historically less volatile than equities CALIFORNIA = NCB = Double tax exempt = 5.50 to 5.80%
Munis – trading at historic levels versus treasuries NEW JERSEY – NJV = Double tax exempt = 5.10 to 5.40%
Nuveen since 1898 has 119 billion under management – over 55 billion in municipals
Low correlation to other asset classes - Diversification
IT’S NOT WHAT YOU EARN, ITS WHAT YOU KEEP 5.25% IN A 35% Tax Bracket is an 8.08% Tax equivalent yield

In the news – tax rates are raising in many states
Stimulus plan is a potential positive for municipalities
High quality munis are being potentially undervalued in current market

[mimo_100]

I used to buy Puerto Rican Telephone bonds - they are triple tax free and guaranteed by the Federal Government - much safer than state bonds.

"A situation that allows for triple tax free status is when a bond is bought that is issued by a U.S. Territory. Examples include Puerto Rico, US Virgin Islands and Guam. "

You are probably aware of this, but just in case ...........

Tim

[ariacook]

State income taxes are amusing things, as not a soul wants to pay them but every person wants the things they pay for. Some states are mulling switching entirely to sales taxes, but the arguments for and against sales taxes and state income taxes are equally compelling.