[quote=sdrealtor][quote=gzz]I am buying Cal muni bond funds that yield about 5% tax free.

Not risk free but pretty low risk IMO.

They aren’t going to default, but further large rate increases would hurt them.[/quote]

As an inflation hedge?[/quote]

The YTD of one of my CA muni bonds index is pretty much as bad as the S&P 500 this year. And over the past 5 year it’s negative and way worse than the S&P500. One would have been better off just staying in cash.

[img_assist|nid=27590|title=vcaix|desc=|link=node|align=left|width=500]

[img_assist|nid=27592|title=sp500|desc=|link=node|align=left|width=500]

It’s even worse if you compare the 5 year

[img_assist|nid=27593|title=vcaix 5 year|desc=|link=node|align=left|width=1000]

At least S&P500 had a really good 5 year

[img_assist|nid=27594|title=sp500 5year|desc=|link=node|align=left|width=1000]

Yes, the dividend is federal and state tax exempt but YTD was atrocious overall for the past 5 years…