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The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return.
: Investors should evaluate munis based on what a taxable bond would need to pay to match their return.
For an investor in the top tax bracket (37% + 3.8% NIIT = 40.8% total federal rate), a is equivalent to a 6.1% taxable yield .
: Despite a slower economy, state and local governments maintain strong liquidity positions and healthy "rainy-day" reserves to offset potential slowdowns.
The primary reason to buy municipal bonds is their unique tax-exempt status, which significantly enhances their actual take-home return.
: Investors should evaluate munis based on what a taxable bond would need to pay to match their return. why buy municipal bonds
For an investor in the top tax bracket (37% + 3.8% NIIT = 40.8% total federal rate), a is equivalent to a 6.1% taxable yield . The primary reason to buy municipal bonds is
: Despite a slower economy, state and local governments maintain strong liquidity positions and healthy "rainy-day" reserves to offset potential slowdowns. why buy municipal bonds