Conference nyoss1::market_investing

    I never found a mutual fund that does this, so that means you have to
    go thru a broker.  There are a few I can recommend, only because I have
    used them.  You have to setup a brokerage account first, no charge for
    this.  Then you tell the broker to go find some NH bonds.  the market
    changes daily, so if you find a certain bond that is attractive buy it,
    it might not be available tommorrow.  you can get anything from 1 year
    out to 30 year maturity.  The zero-coupon bonds seem popular, they don't
    pay interest annually, but it all comes due at the maturity, 1 lump sum.
    Make sure to ask for the rating, get something at least A ("single A")
    is pretty good.  You need about $10k to get started and they are sold
    in $5k chunks.  I would recommend holding your NH bond to maturity,
    don't buy and sell them.
    
    ken

    Ken,
    
    If they are sold in $5K chuncks, why do you need about $10K to get
    started?  

    The bonds are normally sold in $5000 chunks and they want at least 2 of
    these to get started.  You might find a broker willing to start with
    less but I wouldn't bet on it.  One way to get started with less is
    to get zero-coupon bonds.  For example you can buy $10k worth of a
    10 year zero-coupon for about $6k.  when it matures 10 years from now
    you will get $10k.  the short term bonds 1-3 years are about 4% right
    now, the longer term ones 10+ years are about 5%.
    
    5% tax-free is the same as a 7% taxable bond (28% bracket).
    the 30 year treasury (taxable) is about 6.4% so you can see that
    long term tax-free bonds are now selling at a bargain.  this is because
    of the threats of a flat-tax, however most agree a flat-tax won't pass
    this year or next.  in which case these muni's will rally and become
    more valuable.
    
    ken

    What will happen to the value of these bonds in the long run if the 
    flat-tax is passed?
    
    
    
    

    if the flat-tax (as proposed) passes then muni prices would fall somewhat
    to be equal to other bonds.  or it's possible that other bonds will rise
    somewhat to be equal to muni's.  either way, at maturity you will still
    get back your original principal + interest.

    your real risk is default!  when someone decides not to pay back your
    principal + interest.  this is a risk in theory but I have never heard
    of it happening in N.H.  that is why I stay with the "A" or better rated
    bonds.  the "AAA" rated are safest but you pay a premium for these, I am
    willing to take some minor risk for higher yields of a single-A bond.

    ken

    You had mentioned that you could recommend some brokers, please
    let know who they are.
    
    Thank you,
    Linda

    First Albany has an office in Nashua, 883-7500 ask for Jim Abagis.

    Waterhouse 800-934-4445 also sells state bonds.

    First Albany is more up on the local scene, since they have an office
    in N.H.  They might know of some upcoming IPO and will be helpful if
    you are getting started buying bonds directly.  Your call to Waterhouse
    gets routed somewhere and they just look up on the computer to see what
    is available.  Waterhouse won't be familiar with any local issues.
    
    ken