The tax advantages of municipal bonds make them appealing for many clients. The higher your tax bracket, the greater the likelihood that you may find municipal bonds to be an appropriate fixed income investment. Municipal bonds are debt obligations issued by states, cities, counties and other government entities to raise money to build schools, highways, hospitals, sewer systems and other projects for the public good.
Municipal Bond Benefits
Municipal bonds offer a wide range of benefits, including:
- Predictability: Most municipal bonds pay interest semi-annually and the principal is returned to the investor when the bonds mature
- Safety: Investment grade municipal bonds have an excellent history of credit worthiness
- Tax-advantaged income: The interest earned on most municipal bonds is exempt from federal income taxes, and may be exempt from state taxes in the issuer's state as well
- Choice: There is a wide range of options for municipal bond holders with regard to investment quality, maturity and choice of issuer
An Industry Leader
While your goals may be clear, such as maximizing tax-free income or safeguarding principal, the complexities of the municipal bond market often require professional guidance, regular reviews and thorough analysis. Municipal bond investors seeking sophisticated and personalized solutions can draw upon the resources of our Firm, which provides the following advantages: - Market access and liquidity with a broad variety of new issue bonds as well as a large inventory of secondary market bonds
- Professional guidance with a local perspective on what and when to buy or sell
- We can help you benefit from niche market opportunities
- You can stay informed of market trends with our municipal bond publications
Ask your Financial Advisor whether municipal bonds make sense for you, given your needs and goals.
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