Municipal Bonds
Focus on Preserving Your Wealth with Municipal Bonds
At Prevision Wealth Planning, we favor individual securities and bonds over funds. This strategy can be an important way to diversify your portfolio, reduce costs, and better manage your tax liability. Plus, it can provide a steady stream of income payments. If you’re risk-averse and focused on preserving wealth, municipal bond investing may be the preferred solution for you.
Bonds provide a predictable income stream and can help offset exposure to more volatile stock holdings.
Bond benefits include:
- Interest is typically paid twice a year
- Bond investors receive a return of face value if held to maturity
- It’s a good way to preserve capital while investing
- Interest from municipal bonds is generally exempt from federal income tax
- Interest may also be exempt from state and local taxes for residents in the states where the bond is issued
Let Prevision Wealth Planning advise you on bond selection. We can offer guidance on specific bond types, including short- and long-term bonds. If you are new to bonds, we can provide more general information so you can decide if this is a smart investment for you.
Municipal bonds are federally tax free but may be subject to state and local taxes, and interest income may be subject to federal alternative minimum tax (AMT). Bonds are subject to availability and market conditions; some have call features that may affect income. Bond prices and yields are inversely related: when the price goes up, the yield goes down, and vice versa. Market risk is a consideration if sold or redeemed prior to maturity.
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Focus on Your Future
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