Tax Free Municipal Bonds Are More Secure Than Other Investments?

Question

Tax Free Municipal Bonds Are More Secure Than Other Investments?

asked Jan 4, 2021 by anonymous

1 Answer

Answer :

When you are looking for a low risk, long term type ofinvestment municipal bonds is the first place you shouldinvestigate. Tax free municipal bonds are bonds issued by local andstate governments and their associated entities. These bondsguarantee the return of your investment in a specified number ofyears along with interest.These bonds have an additional bonus attached to them. Theprofits you make from the money are tax free. The IRS hasinstituted this policy in an effort to have investors place theirmoney into government programs. These bonds are issued sogovernment authorities can pursue local infrastructureprojects.When you invest in tax free municipal bonds the interest rateyou make will be slightly lower than on corporate bonds. Thisshould not be a deterrent. The tax free status of t

answered Jan 4, 2021 by anonymous
selected Jan 4, 2021 by anonymous

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