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Show Taking A Look At Jinnie Maes By EDWARD THORLUND Those now seeking the high interest rates of yesterday are having to look at Jinnie Maes (U.S. -backed housing loans), revenue bonds which are tax-free tax-free but not guaranteed, and other paper. BANK interest is down. So are returns from tax-free municipal muni-cipal funds such as Nuveen, which were paying over ten percent as recently as early February. Revenue and tax-free bonds from nursing homes, health centers, utility companies, etc., are still offering the investor inves-tor about 12 percent, depending depend-ing on the rating-or non-rating. non-rating. NON-RATED tax-free bonds are offering over 13 percent per-cent as this is written, down nrorh over 14 percent a few months ago. Bonds rated "A" or better are sometimes paying as much as 12 percent but the rate of return on hese has also been declining. Meanwhile, bank interest in many areas is about eight percent, per-cent, which is taxable, Thus the question is where to put one's savings. IF ONE can earn more than bank interest in a fund which is liquid, many will invest there. But these funds are usually not guaranteed and the interest rate changes constantly. con-stantly. Jinnie Maes are guaranteed. Brokers still offer a return near 12 percent in some areas as this is written. Whether to choose them or non-guaranteed but tax-free interest from bonds depends in part on one's taf bracket. IT ALSO depends on whether one can afford to lose some of his or her savings. |
