- What is a municipal bond? It is debt security issued by a state, municipality, or county to finance its capital expenditures.
- What is a municipal bond fund? It is a fund that invests in municipal bonds.
- How is a municipal bond fund helpful in lowering the taxes? Because the bonds are issued by local and state governments, they are usually exempt from federal taxes, and if they are issued within the state of the purchaser, are also exempt from state taxes.
- Are they structured like a corporate bond? Yes, they are structured like other bonds with coupon (interest) payments and a lump sum payment at maturity.
- How often do they pay the interest? The bond funds pay distributions monthly, quarterly, semi-annually, or annually.
- Are they risky? The funds fall on the conservative side of the risk tolerance scale and often attract risk-averse investors by offering slow, steady income, and offering stability during more volatile markets.
Knowing if a municipal bond fund is right for you take more in-depth research. There are a multitude of things you need to examine. But, knowing these funds can help save on taxes and offer you some comfort in a fluctuating market is a step in the right direction. The next step is to contact us. We’re not only Lockheed Martin specialist, but we are also experts at providing advice on things like this for your investment and retirement needs! Call us today at 817-210-3444 or click HERE to book a complimentary consultation!
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Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.
Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.
Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.
SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.
Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.