Municipal bonds
Regional governments may offer a high credit quality or low-risk return when they issue municipal bonds. These bonds also earn interest tax free, generating tax-advantaged income as they mature. If you’re an income-oriented investor looking to reduce federal and even state income tax bills, municipal bonds may be a great option.
Important information:
Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity.
You must evaluate whether a bond or CD ladder and the securities held within it are consistent with your investment objectives, risk tolerance and financial circumstances.
Diversification does not guarantee a profit or protect against loss in a declining market.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.