Investors are attracted to municipal bonds (市政债券) for three reasons: safety of the original money, regular predictable income and the tax-free benefits. Together, these three elements can make municipal bonds a convincing case in your investment.
Safety of the original money
When investing in municipal bonds, investors are paid back the full face value of their investment when the due date comes or earlier if called. This is why many investors, particularly those nearing retirement or in retirement are fond of investing municipal bonds, who are concerned about protecting their money. It could be the smartest retirement investment you make.
Regular Predictable Income
Municipal bonds typically pay interest every six months unless they get called. That means that you can count on a regular, predictable income stream. Because most bonds have call options, which means you get your money back before the due date, then the next municipal bonds you purchase can earn more or less interest than the called bond.
Tax-Free Benefits
Income from municipal bonds is not subject to federal income tax and, depending on where you live, may also be free from state and local taxes. Tax-free can be a big attraction for many investors.
We're sure you'll want to know more about the benefits of Municipal Bonds. So our specialists have written a helpful Bond Guide for investors.
In the Bond Guide, you'll learn:
·The benefits and risks of municipal bonds
·Strategies for smart bond investing
·Municipal bond facts every investor should know
Call (800)316-1846 or visit www. MunicipalBonds.com to get one for free.