After reading the bonds have outperformed stocks for the last 30 years... why don't we take a look at diversified close end funds such as Nuveen's California Muni Value fund.  Paying 4 cents a share, per month yielding 5.5% and nearly 9% tax equivalent.

Remember what Saul says, "Securities that don't pay cash flow are baseball cards."

Nuveen California Municipal Value Fund, Inc. (the Fund) is a closed-end, diversified management investment company. The Fund seeks to provide current income exempt from both regular federal and California state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of California or certain United States territories. The Fund invests at least 80% of its net assets in investment-grade quality municipal bonds (Baa/BBB or better). It may invest up to 20% of its net assets in municipal bonds that are rated Ba/BB or B, or that are unrated but judged to be of comparable quality by the Fund's investment advisor. The Fund is authorized to invest in inverse floating-rate securities, forward interest rate swap transactions and zero-coupon securities. The Fund’s investment advisor is Nuveen Asset Management, a wholly owned subsidiary of Nuveen Investments,