Ever since the US income tax was instituted in 1913, there has been a special carve out for municipal bonds, i.e., the debt obligations of states and municipalities. The interest these bonds pay is federal income tax-free. These bonds are also usually tax-free in the state of issuance. ...
There’s more to diversifying your income than just lowering your overall investment risk. Adding different types of investments, like municipal bonds, is a great way to utilize assets that provide tax-advantaged income. What makes thesetypes of bondsworth owning is that the interest they pay ou...
Municipal or “muni” bonds Issued by states, cities, counties or local government entities. Income from certain municipal bonds is exempt from federal taxes; some munis are also free from state and local taxes. Corporate bonds Issued by corporations to raise money for different purposes. Corporate...
I Bonds, or Series I savings bonds, are government-backed securities designed to help protect your money from inflation. These bonds combine a fixed interest rate with an inflation-adjusted rate, making them attractive during periods of rising prices. Wh
Municipal bonds are said to be “escrowed to maturity” when the proceeds of a refunding issue are deposited for investment in an amount sufficient to pay the principal and interest on the issue being refunded. However, in some cases, the insurance company may expressly reserve the right to ex...
► The old standby - municipal bonds► Sell your house and pay $0 Capital Gains► How 85% of Retirees pay $0 tax on Stock Dividends and Capital Gains► Pay the lowest amount (or maybe $0) or IRA and 401k Withdrawals► Why your accountant does not help you pay less tax===*Joi...
A corporate bond is a bond issued by a company, often a publicly traded company. It stands in distinction to bonds issued by other organizations, such as Treasury bonds issued by the U.S. federal government and municipal bonds issued by state and local governments....
Corporate and municipal bonds might be bought, similar to stock, through full administration, rebate, or online representatives, just as through speculation and business banks. When new-issue securities have been estimated and sold, they start exchanging on the optional market, where a dealer additio...
Munis are safe, but they do come with risks you should understand. Munis can provide both financial returns and pride in supporting local projects. What are municipal bonds? Municipal bonds, or “munis” for short, are essentially loans that you give to your local government (like your city ...
A tax-exempt money fund (also called a municipal money market fund) offers earnings that are free from U.S. federal income tax. Depending on the exact securities it invests in, a tax-exempt money fund may also have an exemption from state income taxes. Municipal bonds and other debt secur...