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Learning about tax-free municipal bonds

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Question: I do not want the risk of the stock market and I certainly don’t need to pay any more taxes. It seems to me that tax-free municipal bonds are a good choice for me. Is my thinking sound?
 
Answer: If you are very wealthy, tax-free municipal bonds may be a good choice for you.
If you’re trying to become very wealthy, tax-free municipal bonds are not going to help you get there.

Let’s make sure we understand what a municipal bond is and why it is tax-free.

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