Getting core bond exposure to investment-grade debt holdings might be the default move for investors who want to simply diversify their portfolios of equities, but municipal bond exposure offers its own benefits that investors should also consider. U.S. News offered three advantages to municipal bonds that investors may not be aware of.
With investors already knee-deep into 2022, it’s hard to believe that the year will soon be coming to a close. As such, it’s never too late to try to minimize the year’s tax burden when April 2023 is around the corner.
Municipal bonds can provide tax-free income, making it an ideal source of cash flow for high net worth individuals. Its relative safety compared to other riskier assets also make it an ideal option for retirees.
“Investing in municipal bonds doesn’t incur federal income tax and, in certain cases, state and local income taxes,” the article noted.
ETF TRENDS
by BEN HERNANDEZ
AUGUST 12, 2022