Expert: Doug Ingram - 4/28/2008

Question
Hi Doug, I am an expert in insurance law and personal injury law.  My question is regarding the proceedure of purchasing a municipal bond in the State of Florida.  I have seen a bond listed for 5% yield, is AAA rated and backed by the State of Florida.  Do I really need to go through my financial analyst or can I safely purchase this type of bond by myself.  She is telling me that she would cut her commission if I decide to buy into it.  It pays on a bi-yearly basis and is callable in the year 2012.

Answer
Generally speaking, a AAA rated bond is a sound investment.
You need some sort of broker dealer to handle bond transactions.
It's a little more complex than stocks.
They will give you a price and yield that includes commissions.
You need some sort of broker to buy or sell bonds.
Using someone you trust is key.
If they sell it to you to yield 5%, there should be no other charge unless you are paying a portfolio manager or a nominal "ticket charge".