Smithsonian Magazine

EXCITING PLANS NEED SENSIBLE BONDS.

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The Main Advantages of Municipal Bonds

Investors are attracted to municipal bonds for safety of principal and the tax-free benefits. Together, these 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 April of 2022, 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 2021. 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 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.

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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