Municipal bonds have long offered investors the potential to generate income and save on taxes. Municipals are unique in that they offer the benefit of income exempt from federal income taxes (and in some cases, state taxes). This benefit is especially valuable today as taxpayers feel the pinch of higher taxes in a low yield, low growth environment.
Adapt to higher taxes by increasing allocations to municipals:
- Rethink traditional municipal bond strategies by taking advantage of flexible strategies that seek to balance the trade-offs between income and returns while mitigating volatility.
- Allocate to municipal bond ETFs that are low cost, tax-efficient and provide instant diversification to help you keep more of what you earn.