Municipal bonds may be good for your portfolio
If your investment portfolio consists of only equities, you may want to diversify.
Stocks and other equity securities are an important part of your investment mix, but you may also want to consider some fixed income investments like municipal bonds.
Income is generally free from federal taxes and state taxes for residents of the issuing state, however capital gains, if any, will be subject to taxes.
Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).
When you purchase a new-issue municipal bond, you actually make a loan to the issuer, which may be a city, township or school district, for example.