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  • Invest In An American Recovery With Bonds
    I have written exclusively about dividend and growth stocks as well as several higher risk plays and option strategies. I have received more than a few messages from readers requesting that I look at some bonds and funds, and write an article about several.

    One way to go is an individual bond. I like Municipal Bonds because they are tax free (federal) and give nice returns with very low risk

    Here is one I just found:



    SERIES 2012

    CUSIP number:392546
    S&P AA Rating
    Moody's Aa2 Rating
    Taxable Equivalent Yield: 3.5%
    Expected Price: $98.64

    Ok, now that is ONE option, but here is what I REALLY LIKE:

    I will tell you up front I am not a big fan of mutual funds simply because I cannot manage the holdings myself. A bond fund is different, in my opinion, because there appears to be less turnover in its holdings, especially when it is a well defined fund.

    Eaton Vance Build America Class "A" Bond Fund (MUTF:EBABX) has caught my attention in my research. I believe it to be a sound addition to any income seeking portfolio and at today's pricing it is an attractive buy.

    What is EBABX?
    EBABX is a bond fund that invests more than 80% of its nest assets in taxable municipal obligation bonds of which the majority are "Build America Bonds". These bond holdings are the main focus of this fund.
    The AA or AAA ratings of most of the funds in this category implies a lower level of risk than ordinary municipal bonds, and therefore it could fit nicely into our core portfolio for income seeking investors as well as retirees.

    The Basic Fundamentals
    1) Its NAV is currently $12.05 as of 1/18/2012
    2) The current dividend yield is 4.25%
    3) The NAV range suggests low volatility within its 52 week price range of $10.07 at a low, to $12.20 at a high
    4) Its focus is on current income with a secondary focus of capital appreciation
    5) Lipper Bond Ratings gives it the highest rating it has; 5 on a scale of 1 to 5

    What Are The Costs
    1) There is a front end load of 4.75%
    2) The expense ratio is 2.11%
    3) According to Fidelity Investments there is a $2,500 minimum initial investment, however I have read other reports stating a $1,000 minimum. For this articles purpose let us just say it is between $1,000 to $2,500

    My Opinion
    Eaton Vance Build America Class A Bond Fund (EBABX) is a sound investment for just about anyone. Given the puny returns on Treasuries, CDs, and Money Market Funds, it is a rather low risk alternative with a very decent yield.

    The fees are on the high side yet even after accounting for those fees, this fund has returned 9.40% over the past year, and 11.35% for the life of the fund.

    There is also a load reduction schedule which depending upon how much you invest, could reduce the front end fees ( all the way down to zero for very large investments), so there is flexibility there.
    I also could see some capital appreciation from these levels if the government pours money into our infrastructure, which would also aid in job creation. All in all, I see this bond fund as a compelling addition to any balanced portfolio.

    · Please do your own research prior to making any investment decisions and never rely solely on the opinions of others.


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 19 9:21 PM | Link | Comment!
  • Happy New Year Everyone!
    I will be taking some time off beginning tomorrow, 12/31 and returning 1/8/2012.

    I wanted to take this opportunity to wish everyone here; our SA team, all of our authors and contributors and commentors, and of course our loyal readers and membership of this unique group of indivduals and professionals who make up the diverse world of

    I have much to be thankful and grateful for. I have grown as a writer, as a researcher, and as an investor by the collective wisdom that folks freely share here.

    I can say without a doubt that you are all a large part of my extended family, and have given me a new life, of giving back to regular people who have blessed my own life with thier own uniqueness and kindness.

    My promise to all is that 2012 i will do my very best to enlighten, educate, entertain, and have fun with all of the folks here, especially us individual investors who are always seeking to understand how we all can do better for ourselves and our families.

    Happy and Healthy 2012 everyone!

    Regarded Solutions

    Dec 30 9:26 AM | Link | Comment!
  • I Absolutely, Positively, Unequivocally, LOVE Seeking Alpha!
    I have read hundreds and hundreds of articles on SA and I must tell you that we have the most amazing collection of author/writers/contributors/commentors, etc. on this website that I have ever had the pleasure to read.

    I am probably not the most sophisticated writer, because I feel that what folks need is clarity, ease of undertanding and that "oh yeah" moment when it comes to the financial world, investing, and money management.

    I will continue to write articles for the regular guy or gal who needs to be able to cut through the confusion to get to the point that they understand what this whacky world of investing really is.

    Ever wonder what makes Jim Cramer so effective?

    It isnt his stock picking ability thats for sure, and this man is a Harvard MBA, brilliant, and as good a financial expert as they a very unique way.....he is able to communicate to regular people, what some might say are very complex concepts. He does it in a way that is entertaining, as well as informative, and breaks it down so that more folks can actually understand this stuff.

    Those are the folks who I write for. Not the "experts" who already know everything, but for those who have a desire to do better, to learn, to handle their situation in the best possible manner, without having to pay someone else to do it for them!

    As I have stated, I am not a professional advisor, I am not a stock broker, and I have never been in the business of selling any of those services to anyone....for me, this is FUN and the way I give back to people....not to get clients, not to sell a product, or promote a stock for personal gain.

    From time to time I will give a plug to a company that I happen to be affiliated with, but do not receive a dime, simply because I know the folks there, they have a great product, and can actually help any business succeed.

    So, why am I here?

    To impart 40 years of experience, and my somewhat succesful track record in the world of investments, as well as my corny, whacky, shameless self promoting goofy side, for anyone who wants to take a few minutes to read some very direct, straight to the point, no muss no fuss, nicely written articles that could actually help many many people, learn, succeed, and understand a bit more than they did before they read my stuff!

    I find it absolutely remarkable, that in about one month since I began writing here, that I have had nearly 1/4 of a million readers, have become the number one most read author on retirement strategies, and in the top 50 in a slew of other categories......why?????? I think because I speak to everyone, and everyone can understand me....and I absolutely love doing has given me more satisfaction than I ever had in my 40 years out "there" in the world of business. UNBELIEVABLE! (but absolutely the truth)

    I would like to feel I am not alone in this regard. I think that the really great authors and contributors to Seeking Alpha feel as I do. Tremendous satisfaction that people are getting a lot out of what we offer.....and its FREE for everyone out there!

    OK, I said my piece

    Keep reading my articles, and keep liking what I have to say!



    Nov 19 1:13 AM | Link | 4 Comments
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