Some leveraged Closed-end Funds are currently paying distribution rates as high as 10%.

Melville, NY -- (ReleaseWire) -- 09/10/2015 -- Hate to haggle for a bargain? You're not alone. So, imagine your excitement at having the opportunity to shop at a store where most prices are meaningfully discounted from where they were just a few weeks ago. Now, picture that a kind stranger just handed you a coupon to take an additional discount off the already reduced prices. And, it gets better…many of the items available for purchase are hard to find sought after items.

This is not fiction. Welcome to the world of Closed-end Funds [CEFs] where this type of opportunity truly exists today. This is due to the fact that many CEFs invest in securities that have sold off sharply. Currently, investors can find some of the best opportunities CEFs that invest in corporate bonds, dividend paying stocks and emerging market bonds.

A Closed-end Fund, like a mutual fund, is a professionally managed portfolio of securities. However, unlike a traditional open-end mutual fund, a CEF issues and maintains throughout its life a fixed number of shares, rather than continually creating and redeeming shares at Net Asset Value (NAV)—the fund's market value established at the end of each daily trading session. In addition, a CEF trades in the open market just like a stock and consequently, its market value is a direct function of the supply and demand for its shares. This means that a particular CEF can often be purchased at price that is above (premium) or below (discount) its real value (NAV). So, an investor can buy a CEF for $15, and thereby obtain part ownership in a portfolio of stocks and/or bonds with a current market value of $16.

The first closed-end fund was launched in 1893 and today there are about 600 CEFs traded on US Exchanges. Retail investors own approximately 80% of their shares. These investors tend to move in and out of the market at the same time. This herd like, buy high and sell low, behavior creates potential opportunities for patient investors.

Bryn Torkelson, President and CIO of Matisse Funds—a mutual fund that invests exclusively in discounted CEFs—explains, "When discounts approach the level we see today, history teaches us and our research validates that it is a good time to invest in CEFs." The research conducted by his firm, which analyzed more than a quarter of a century of data, demonstrates that historically when CEFs discounts have exceeded 8%--as it is the case today—during the ensuing 12-month, the average CEF generated returns of +18.5%, while CEFs with the widest discount to NAV—representing nearly 25% of the CEF universe—appreciated 26.1%. Undoubtedly, an attractive bargain, when compared to the S&P 500 +1.3% return for the same period. Incidentally, discounts above 8% have happened only less than 10% of the times over the past 25 years.

Currently, CEFs trade on average at a 9.90% discount to their NAV. This wide discount enhances the yield on income producing CEFs. As a matter of fact, some leveraged CEFs are paying distribution rates as high as 10%. While leverage increases risk, it may also increase returns.

Consequently, receiving a high cash flow often contributes to tame the overall investment risk. After all, those investors who are fortunate enough to receive a 10% cash flow for 5 years, even if faced with a 25% drop in the price of their investment would in the end capture an overall 25% return. Of course, there are no guarantees when investing. However, astute investors can leverage the current CEF bargains to tilt the odds in their favor.

About Lantern Investments, Inc.
Based in Melville, NY, Lantern Investments, Inc. is a wealth management firm that educates and guides multi-generational clients to achieve their financial goals by managing risk, growing assets and preserving wealth. The firm has offices in Westbury, NY, Chicago, IL, Houston, TX, San Francisco, CA and Hoboken, NJ. For more information call (631) 454-2000 or visit http://www.lanternwealth.com

About Keith Lanton
Keith Lanton is the President of Lantern Investments. He works with clients to develop optimal asset allocations and investment portfolios that factor in the clients risk profile and income needs. He has appeared on financial radio shows, been quoted in newspapers and industry publications and also served on numerous investment panels and forums. He can be reached at keith@lanterninvestments.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Buying municipal bonds empowers investors to retain 100% of their interest income.

Melville, NY -- (ReleaseWire) -- 06/26/2015 -- A wise man once said, "Choose your friends wisely. Not everyone has your best interest." Investors, please take note.

Savvy investors are the ones who most often choose to invest in tax-free municipal bonds. They have a very good reason for doing so—they avoid taking on a stealth partner, such as Uncle Sam or a state government, whose "best interest" is to take away a share of an investor's profit. In fact, by buying tax-free municipal bonds, investors may be able to keep 100% of their interest income.

Every time an individual receives a coupon payment form a taxable bond, earns interest from a certificate of deposit (CD) or a bank account, she or he is investing with a partner. Be it Uncle Sam or the US Government, that partner claims its partnership share of every interest payment received. Uncle Sam in particular is an astute partner. He does not claim his share at the time an investor receives interest payment. Rather, he asks for payment every year on April 15th. By demanding his share at a later date, as part of a complicated tax return, Uncle Sam makes it much harder for investors to realize the magnitude of his "participation" in their hard earned interest income.

For those who are in the highest federal tax bracket, Uncle Sam becomes a 39.6% partner of every taxable interest payment they receive. For investors living in high tax states, such as California or New York, the situation is even worse. For example, for an individual in the highest state tax bracket in California, in addition to Uncle Sam, the State of California joins the partnership by claiming 13.3% of every taxable interest payment she receives. Think about it! That investor puts up 100% of the capital to receive only 47.10% (100%-39.6%-13.3%) of the return!

Buying municipal bonds empowers investors to achieve two key strategic goals: 1) circumvent the risk of taking on unwanted partners; and, 2) secure their ability to retain 100% of their interest income. Currently, municipal bonds are trading at attractive historical levels relative to taxable bonds. Yields on 10-year municipal bonds are 105.16% of the 10-year Treasury and 20-year municipal bonds are yielding 114.39% of the equivalent Treasury. This has a very important implication for investors, as it means that despite the fact that municipal bonds' income is tax-free—consequently, their rates should be lower—their yields on maturities greater than 10 years are higher than those on treasury bonds! Of course, the latter are backed by the full faith and credit of the United States. Nevertheless, municipal bonds levels over 100% are high by historical standards.

So how can investors go about in finding the right bond? Here are 5 tips:

1) Think like a Banker! -- A bond is a loan, and the investor is the bank.
2) Time Horizon – An investor must decide when she wants the loan (bond) to end.
3) High yield is not everything – Is the extra return worth the potential loss of principal and the stress associated with it?
4) Credit Worthiness – Investors must evaluate how likely they are to get their money back
5) Tax Equivalent Yield – An investor must compare apples to apples by calculating upfront what interest rate must be received on a taxable bond to earn the equivalent tax-free yield.

No one knows where interest rates will be in the next few years. What is known instead is that, if investors buy a tax- free bond paying 4% and hold it until maturity, they will receive an attractive tax-free income. In fact, that tax equivalent yield will be 8% if the investor is in a 50% combined federal and state tax bracket. At maturity, as long as the issuer remains in good standing, the principal will be repaid in full.

About Lantern Investments, Inc.
Based in Melville, NY, Lantern Investments, Inc. is a wealth management firm that educates and guides multi-generational clients to achieve their financial goals by managing risk, growing assets and preserving wealth. The firm has offices in Westbury, NY, Chicago, IL, Houston, TX, San Francisco, CA and Hoboken, NJ. For more information call (631) 454-2000 or visit http://www.lanternwealth.com

About Keith Lanton
Keith Lanton is the President of Lantern Investments. He works with clients to develop optimal asset allocations and investment portfolios that factor in the clients risk profile and income needs. He has appeared on financial radio shows, been quoted in newspapers and industry publications and also served on numerous investment panels and forums. He can be reached at keith@lanterninvestments.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Melville, NY -- (ReleaseWire) -- 04/06/2015 -- "Don't judge a book by its cover and your investment performance by…its brokerage statement!" cautions Keith Lanton, President of Lantern Investments.

Lanton warns that investors continue to inaccurately assess the performance of their investments, especially around this time of the year—tax season—when they review their 1099 Form.

Ahead of the April 15 tax-filing deadline, brokerage firms mail to their clients the 1099 Form, which lists proceeds from the sale of each security executed during the previous calendar year. The form features among others a "cost basis" column recording the original price paid for each security held in the portfolio. The difference between the cost basis and the price at which the investment was liquidated represents a realized gain or loss.

"When reviewing the 1099 Form, most individuals erroneously rely solely on the realized gain or loss figures to assess the performance of their investments," states Lanton. He explains that this is a mistake as it leads them to quickly conclude that if they invested $10,000 in a security four years ago and received $13,000 when they sold it, the $3,000 total return generated made this a good investment. Conversely, if the sale yielded only $9,000, the investment was not a good one. After all, money was lost.

"The surprising and very often unobserved reality is that—despite the loss—the not good investment may have produced a higher return-on-investment than the good one!" adds Lanton. "How can this be possible when the $1,000 investment loss was clearly spelled out in black and white in the 1099 Form and plainly listed every month in the unrealized gain & loss column of the brokerage statement?"

Lanton provides the following explanation. Unquestionably, 1099 Forms and the unrealized gain and loss information featured in brokerage statements are accurate. However, investors must realize that it is "only accurate" for determining how much an investor "owes" in taxes in the case of a realized gain, or, "may owe" in the case of an unrealized gain. The following comparison of two hypothetical scenarios will provide a better understanding:

Investment one: An investor purchases a mutual fund at $10 per share on January 1st of year one; the fund declares a $1.50 per share capital gain each year for four years. The investor sells the fund at the end of year four at $9 per share.

Investment two: An investor purchases a stock on January 1st of year one at $10 per share and sells it at the end of year four at $13 per share.
Results: The realized loss on the mutual fund investment is $1,000 and the realized gain on the stock is $3,000.

Return on Investment: While the stock investment produced a 30% return ($3,000/$10,000), the mutual fund investment—despite its loss—generated a 50% return ($5,000/$10,000). The $5,000 gain/return is comprised of $6,000 in realized and paid capital gains ($1,500 per year for 4 consecutive years) minus the $1,000 loss incurred, due to the mutual fund's price drop from $10 to $9.

Lanton points out that in reviewing a hypothetical 1099 Form featuring the two assumed examples above, most investors would without a second thought wish their adviser had never bought the mutual fund and instead bought more of that stock. "However, there is a distinction with a difference," Lanton continued. "Investors must realize that the information contained in the 1099 Form and in the unrealized gain & loss column of their brokerage statement list ONLY the current status of taxable gains and losses. That information does not necessarily, and often doesn't, reflect investment performance. Dividends, interest and capital gains earned in prior years are not exhibited in this year's 1099, nor are they factored into the statement's unrealized gain or loss column."

Lanton concluded by offering the following advice, "Investors who are not consciously aware of this distinction will consistently continue to incorrectly evaluate the performance of the securities in their portfolios. This in turn will lead them to implement crucial decisions, such as what to buy, sell or hold, based on an inaccurate analysis of their investments."

About Lantern Investments, Inc.
Based in Melville, NY, Lantern Investments, Inc. is a wealth management firm that educates and guides multi-generational clients to achieve their financial goals by managing risk, growing assets and preserving wealth. The firm has offices in Westbury, NY, Chicago, IL, Houston, TX, San Francisco, CA and Hoboken, NJ. For more information call (631) 454-2000 or visit http://www.lanternwealth.com

About Keith Lanton
Keith Lanton is the President of Lantern Investments. He works with clients to develop optimal asset allocations and investment portfolios that factor in the clients risk profile and income needs. He has appeared on financial radio shows, been quoted in newspapers and industry publications and also served on numerous investment panels and forums. He can be reached at keith@lanterninvestments.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Zero-coupon tax-free bonds are investment tools that force the investor to accumulate wealth

Melville, NY -- (ReleaseWire) -- 02/12/2015 -- When it comes to investing, all that is certain is that nothing is certain. Today, more than ever, individuals and families desperately seek to find a minimum of certainty for their investments, but it appears to be a task nearly impossible to achieve.

Keith Lanton, President of Lantern Wealth Advisors, disagrees. According to Lanton, "Investing in Zero Coupon Tax-Free Bonds is one of the very few strategies that can help investors bring back some certainty to their portfolios! An investment in zero coupon tax-free bonds empowers investors to achieve two key strategic goals: First, it offers them control over the long-term destiny of a portion of their portfolios. Second, it enables them to have a clearer picture of their financial future by knowing with certainty the outcome and cash-flow of their specific investment!"

Lanton believes that investors have justifiable reasons to complain about the increasingly growing uncertainty they face. As an example, last year, individuals who tried to build their investments on the basis of forecasts by leading economists, ended up with poor returns. "In 2014, seventy two out of seventy two of the nation's top economists polled predicted that interest rates would rise that year. Yet, the 10-year treasury yield fell from 3.00% to 2.20%," noted Lanton. "Furthermore, not-a-single leading economists – none – predicted that the price of oil would tumble from $110 to under $60 per barrel. Yet it did!"

In their ongoing quest for preservation of capital and generating income and growth, investors constantly wrestle with uncertainty. The ability to invest their money confident of knowing upfront what the exact value of a certain investment will be in three, five, ten or twenty years from now, appears to remain a wishful thinking.

Lanton explains that Zero-coupon tax-free bonds can help investors deal with the endemic insecurity of the financial markets. Zero-coupon tax-free bonds can provide certainty in an uncertain world. They are one of a handful of investments that grow and provide a fixed payoff at a specific date. In essence, zero-coupon bonds are investment tools that force the investor to accumulate wealth.

Lanton is a strong advocate of teaching investors about the power of compound interest. Compound interest is the interest calculated on the initial principal and also on the accumulated interest credited to the principal from previous periods of the investment. Often referred as "interest on interest" it enables an investment to grow at a faster rate than simple interest, which is interest calculated only on the principal.

"In today's historically low interest rate environment, zero-coupon bonds help eliminate investment risk when investors hold their bonds to maturity," Lanton declares. "Interest earned on zero-coupon bonds is reinvested back into the bond and the interest rate of the reinvestment represents the investment's yield to maturity. The compounding continues until maturity when the bondholder receives back the face value of the bond."

Lanton provides the following six key reasons why investors should include Zero-coupon tax-free bonds in their portfolios:

1.Exact Investment Value: At a fixed future date the investor knows exactly how much money she will receive. If the bond is not in default and is not callable (redeemable by the issuer prior to its maturity) she will receive the full face value of the bond.

2.Powerful Compounding: The interest on the bond is compounded. That is how a hypothetical $50,000 investment today in a good quality Zero-Coupon Tax-free bond can grow to $100,000 in 18 years. Albert Einstein said, "Compound interest is the eighth wonder of the world. He, who understands it, earns it…he who doesn't... pays it."

3.Known Reinvestment Rate: The reinvestment rate of the bond is certain. An investor knows exactly the interest rate that will be earned on the "accumulated interest." Interest from Zero -coupon bonds are automatically reinvested at an interest rate that equals the bond's yield to maturity.

4.Attractive Tax Benefits: Interest earned on the bond held is 100% free of Federal Income Taxes and in certain instances may be also free of state and local taxes.

5.Cash Flow Control: Knowing upfront the exact amount that a zero-coupon bond will pay at its maturity date empowers investors with the ability to count on a known cash flow at a specific date. This certainty may provide investors with the comfort and confidence they may need to increase the stock allocation of their portfolio and also provide a cushion during difficult periods in the financial markets.

6.Forced Wealth Accumulation: Investors are certain to accumulate wealth at an increasing rate. Investing $50,000 today in a 20 year zero-coupon bond with a 3.5% interest rate will accrue $1,764 ($1,750 interest + $14 interest on interest) at the end of the first year. In the second year the interest accrued will be $1,826 ($1,811.74 interest + $14.26 interest on interest). This magic of compounding interest will continue until year twenty when the investor will receive payment in the amount of the full face value of the bond.

Lanton concludes by warning investors that the cash flows and federal tax free status of a zero coupon tax-free bond are applicable only if the bond is held until its maturity and the issuer remains in good standing. Investors must keep in mind that the credit quality of the bonds selected matters. Zero-coupon bonds are backed by the full faith and credit of the issuer. Prior to maturity the market price of the bond will fluctuate especially with changes in interest rates. Therefore, if a bond is sold prior to maturity, it may be worth more or less than the original investment, and an investor may be subject to capital gains or losses.

About Lantern Investments, Inc.
Based in Melville, NY, Lantern Investments, Inc. is a wealth management firm that educates and guides multi-generational clients to achieve their financial goals by managing risk, growing assets and preserving wealth. The firm has offices in Westbury, NY, Chicago, IL, Houston, TX, San Francisco, CA and Hoboken, NJ.

For more information call 631-454-2000 or visit http://www.lanternwealth.com

About Keith Lanton
Keith Lanton is the President of Lantern Investments. He works with clients to develop optimal asset allocations and investment portfolios that factor in the clients risk profile and income needs. He has appeared on financial radio shows, been quoted in newspapers and industry publications and also served on numerous investment panels and forums. He can be reached at keith@lanterninvestments.com

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm