Our local community is a place we like to call home! It's where we choose to work and play.
Our lives are enriched by convenient services we enjoy each day, and many of these services are paid for by municipal bonds.
Municipal bonds play a pivotal role in helping to build and transform our communities.
When you invest in municipal bonds, you may be helping to fund our public schools, building bridges and roads on which we travel each day, and building quality housing for our elderly. Municipal investments finance our airports, fire departments, hospitals, libraries, sports arenas, the
water systems that support our homes, and so much more.
You can imagine how much each one in our community benefits.
Yes, we all benefit from these services. As an investor in municipal bonds, you are doing good! You are using your money to give back to your community. Wait, there's more! By owning municipal bonds, you may also do well investment-wise. The interest paid to you is generally free from Federal taxes. When you invest in municipal bonds issued from communities within your state, the interest you receive is generally free from State income tax as well.*
For example, if a California resident in the 39.6% combined Federal and 12.3% State income tax bracket invests in a tax-free municipal bond yielding 3%, the taxable equivalent yield would be 6.1%. You may find that your tax bracket is not the highest, yet it may be high enough for you to say "enough" to more taxes.
If you want to keep more of what you earn, you too can appreciate the attractive tax-free income from municipal bonds. Consult with a financial advisor to help you decide which tax-free municipal bonds may be right for you.
Evan Hennessy is a Vice President/Investments with Stifel, Nicolaus & Company, Incorporated, Member SIPC and New York Stock Exchange, and he can be contacted in the Carlsbad office at (760) 804-3424.
* Any capital gains earned from the sale of the bonds are subject to all Federal and most State tax laws, and certain issues may be subject to the alternative minimum tax. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall.
Our lives are enriched by convenient services we enjoy each day, and many of these services are paid for by municipal bonds.
Municipal bonds play a pivotal role in helping to build and transform our communities.
When you invest in municipal bonds, you may be helping to fund our public schools, building bridges and roads on which we travel each day, and building quality housing for our elderly. Municipal investments finance our airports, fire departments, hospitals, libraries, sports arenas, the
water systems that support our homes, and so much more.
You can imagine how much each one in our community benefits.
Yes, we all benefit from these services. As an investor in municipal bonds, you are doing good! You are using your money to give back to your community. Wait, there's more! By owning municipal bonds, you may also do well investment-wise. The interest paid to you is generally free from Federal taxes. When you invest in municipal bonds issued from communities within your state, the interest you receive is generally free from State income tax as well.*
For example, if a California resident in the 39.6% combined Federal and 12.3% State income tax bracket invests in a tax-free municipal bond yielding 3%, the taxable equivalent yield would be 6.1%. You may find that your tax bracket is not the highest, yet it may be high enough for you to say "enough" to more taxes.
If you want to keep more of what you earn, you too can appreciate the attractive tax-free income from municipal bonds. Consult with a financial advisor to help you decide which tax-free municipal bonds may be right for you.
Evan Hennessy is a Vice President/Investments with Stifel, Nicolaus & Company, Incorporated, Member SIPC and New York Stock Exchange, and he can be contacted in the Carlsbad office at (760) 804-3424.
* Any capital gains earned from the sale of the bonds are subject to all Federal and most State tax laws, and certain issues may be subject to the alternative minimum tax. When investing in bonds, it is important to note that as interest rates rise, bond prices will fall.