Mu­nic­i­pal Bonds by Hen­nion & Walsh – pos­si­bly the smartest re­tire­ment in­vest­ment you’ve never heard of.

Los Angeles Times - - THE NATION -

The Main Ad­van­tages of Mu­nic­i­pal Bonds

In­vestors are at­tracted to mu­nic­i­pal bonds for three rea­sons; safety of prin­ci­pal, reg­u­lar pre­dictable in­come and the tax-free ben­e­fits. To­gether, these three el­e­ments can make a com­pelling case for in­clud­ing tax-free mu­nic­i­pal bonds in your port­fo­lio.

Po­ten­tial Safety of Prin­ci­pal

When in­vest­ing in mu­nic­i­pal bonds, in­vestors are paid back the full face value of their in­vest­ment at ma­tu­rity or ear­lier if called, un­less the bond de­faults. This is im­por­tant be­cause many in­vestors, par­tic­u­larly those near­ing re­tire­ment or in re­tire­ment, are con­cerned about pro­tect­ing their prin­ci­pal. In May of 2016, Moody’s pub­lished re­search that showed that rated in­vest­ment-grade mu­nic­i­pal bonds had an av­er­age cu­mu­la­tive 10-year de­fault rate of just 0.09% be­tween 1970 and 2015.* That means while there is some risk of prin­ci­pal loss, in­vest­ing in rated in­vest­ment-grade mu­nic­i­pal bonds can be an im­por­tant part of your port­fo­lio.

Po­ten­tial Reg­u­lar Pre­dictable In­come

Mu­nic­i­pal bonds typ­i­cally pay in­ter­est ev­ery six months un­less they get called or de­fault. That means that you can count on a reg­u­lar, pre­dictable in­come stream. Be­cause most bonds have call op­tions, which means you get your prin­ci­pal back be­fore the ma­tu­rity date, sub­se­quent mu­nic­i­pal bonds you pur­chase can earn more or less in­ter­est than the called bond. Ac­cord­ing to Moody’s 2016 re­search,* de­fault rates are his­tor­i­cally low for the rated in­vest­ment-grade bonds fa­vored by Hen­nion & Walsh.

Po­ten­tial Tax-Free In­come

In­come from mu­nic­i­pal bonds is not sub­ject to fed­eral in­come tax and, de­pend­ing on where you live, may also be ex­empt from state and lo­cal taxes. Tax-free can be a big at­trac­tion for many in­vestors in this time of loom­ing tax in­creases.

About Hen­nion & Walsh

Since 1990 Hen­nion & Walsh has spe­cial­ized in in­vest­ment-grade tax-free mu­nic­i­pal bonds.The com­pany su­per­vises over $3 bil­lion in as­sets in over 16,000 ac­counts, pro­vid­ing in­di­vid­ual in­vestors with in­sti­tu­tional qual­ity ser­vice and per­sonal at­ten­tion.

Our FREE Gift To You

We’re sure you’ll want to know more about the ben­e­fits of tax-free Mu­nic­i­pal Bonds. So our spe­cial­ists have writ­ten a help­ful Bond Guide for in­vestors. It’s free and comes with no obli­ga­tion what­so­ever.

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