Easy Tax-free Income

by Paul D McDonald, MBA
Municipal Bonds are bonds issued by cities, counties, and
states Currently, the federal government has declared that
“dividend income” — money paid to the owners of the bonds — is
free from federal income taxes
Municipal Bond Funds are professionally managed collections of
money that invest in these bonds Therefore, the income from
these mutual funds are also tax-free
Consider this idea: place a portion of your money into municipal
bonds to provide immediate tax-free income, and place the
remainder into other investments that might provide a higher
return Any gains that come from your more aggressive
investments can then be used to “feed” your secure municipal
bond funds
Congratulations! You have now achieved a growing base of secure,
tax-free income and still have the ability to participate in any
long-term market gains Plus, because you have your secure
income, you don’t have to worry about the stock market
fluctuating
Mutual funds will fluctuate in value and the amount received
when sold may be more or less than the original investment
Before investing in any mutual fund, please read the prospectus
carefully regarding fees and expenses

Tags | bonds, collections, federal, fund, funds, government, market, mcdonald, remainder, result, stock, taxes