KEY POINTS
- Municipal bonds, known as muni bonds, have become a popular option for investors seeking security and tax-free portfolio income.
- However, muni bond interest may trigger a costly surprise for higher-income retirees with Medicare premium increases.
Municipal bonds, also known as muni bonds, have become a popular option for investors seeking security and tax-free portfolio income. However, these assets may also trigger a costly surprise for retirees.
Demand surged in 2021 amid President Joe Biden’s proposed tax increases, with a record $96.8 billion of net money flowing into U.S. muni mutual and exchange-traded funds, according to Refinitiv Lipper data.
While plans to hike taxes have mostly stalled, muni bonds are still attractive to higher earners looking for stability, according to financial experts.
cnbc.com
by Kate Dore
FEB 9 2022