The municipal bond market is unique to the U.S. and provides investment opportunities in state, local and regional governments. The tax-exempt earnings benefit is the big draw of municipal bonds, but before selecting one do your research and examine their details and caveats closely.
Watch it to find out:
- The two broad categories of municipal bonds and the revenue sources of each;
- The main appeal of municipal bonds over corporate bond investments;
- How to score “triple play” tax exemptions when purchasing a municipal bond;
- The formula for determining the Taxable Equivalent Yield based on your tax bracket;
- Why putting municipal bonds in a tax-deferred account such as your 401(K) plan is a bad idea.
Investing in municipal bonds can help grow your wealth and preserve your capital. This video also points you to a couple of websites for more information and how to get started.
CONTENT QUOTIENT: The Basics
About the Author
Mr. Addiss develops and facilitates educational programs for a variety of major financial institutions, government agencies and foreign governments.