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There are several ways to invest in municipal bonds, but the most common include purchasing individual municipal bonds, buying muni mutual funds or exchange-traded funds (ETFs) and creating ...
Municipal bonds, or “munis,” are debt security investments in the daily operations or long-term projects of a state, county, city or other government organization. Government entities ...
A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation.
Since municipal bonds come with tax benefits, it doesn’t make sense to hold them in tax-advantaged accounts such as an IRA. It’s best to hold municipal bonds in a taxable brokerage account.
A general obligation bond is a common type of municipal bond in the United States that is secured by a state or local government's pledge to use legally-available resources, including tax revenues, to repay bondholders. [1]
Muni bonds are a more attractive option for investors in high-tax states and cities, so investors in those areas should be sure to calculate the tax-equivalent yield on potential muni investments. ...
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