Buying Municipal Bonds For Dummies 📢

: The primary draw is that interest is typically exempt from federal income tax.

: They are generally considered lower risk than corporate bonds, with historically low default rates. buying municipal bonds for dummies

: The muni market is fragmented; it can be difficult to sell a specific bond quickly without a price penalty. Is it Worth it? The "Tax-Equivalent Yield" : The primary draw is that interest is

: When market interest rates rise, the value of existing bonds falls. If you sell before maturity, you could lose money. Is it Worth it

: Backed by the "full faith and credit" of the issuer, including their power to tax residents. These are often viewed as the safest munis.

: Allow you to invest in a diversified pool of munis for a much lower minimum (as little as