Summary
Should you buy tax free municipal bonds? Are these bonds right for you?
I find that a lot of investors are confused about tax-free bonds. And many people think that because the interest is tax-free it’s a no-brainer that they should invest in these bonds. But it’s not that simple.
Tax-free bonds aren’t right for everyone. In fact, I find that for most people tax-free bonds don’t make much sense at all. For the right investor, they’re a powerful…and they’re one of the few ways to keep your taxes lower in retirement, since the interest on these bonds is exempt from federal tax, and in many cases state tax as well.
In today’s video, I’m talking about what are tax-free bonds, who should consider buying these bonds, and how to invest in tax free bonds.
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DISCLOSURE:
The views outlined in this newsletter are those of True North Retirement Advisors (TNRA) and should not be construed as individualized or personalized investment advice. Any economic and/or performance information cited is historical and not indicative of future results. Economic forecasts set forth may not develop as predicted.
Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for a given client or portfolio.
Investing in stocks includes numerous specific risks including the fluctuation of dividend, loss of entire principal and potential illiquidity of the investment in a declining market. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price.
Any questions regarding the applicability of any specific issue discussed above should be addressed with TNRA. All information, including that used to compile charts and/or tables, is obtained from sources believed to be reliable, but TNRA has not verified its accuracy and does not guarantee its reliability.
Moreover, you should not assume that any discussion or information contained in the newsletter serves as the receipt of, or as a substitute for, personalized investment advice from TNRA or from any other investment professional. To the extent that you have any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with TNRA or the professional advisor of your choosing. All information, including that used to compile charts, is obtained from sources believed to be reliable, but TNRA has not verified its accuracy and does not guarantee its reliability.
