California Tax Free Municipal Bonds
Municipal bonds are the best way to spread your wings into the bonds territory. The state backed bonds have been traditionally accorded the highest grade safety by the bond rating agencies. This helps in investing in these bonds as you are assured of government backing
A lot of states issue bonds for example the state of California issues the California Tax Free Municipal bonds and these are issued and secured by the State government of California. That means in the event of anything happening money will be paid by the State of California to you.
The advantage of these kinds of investments or as they are known as "municipal bonds" is that these are tax free and not very risky. That said in the last few years the state governments have been running huge deficits and that has made people more cautious. Overall the belief is that these are the one of very safe instruments for investment.
If you live in a state other than California then the best bet is to make sure that you invest in that state's Municipal bonds. This is because of the reason that these bonds are no longer tax free for residents of other states. That will mean that the State tax will have to be paid though the federal tax is not there.
Always spread your risk and that is good for your investments. Diversify so that some part is in municipal bonds. For higher gains you should invest some part in the stock market and you should have some part on the savings account.
This diversification will help you make money and be safe also. Then another factor is the safety of investments and these investments made into the California bonds will help you drive the overall safety of the portfolio. The returns may not be as great as stocks but they are stable and very predictable. - 23218
A lot of states issue bonds for example the state of California issues the California Tax Free Municipal bonds and these are issued and secured by the State government of California. That means in the event of anything happening money will be paid by the State of California to you.
The advantage of these kinds of investments or as they are known as "municipal bonds" is that these are tax free and not very risky. That said in the last few years the state governments have been running huge deficits and that has made people more cautious. Overall the belief is that these are the one of very safe instruments for investment.
If you live in a state other than California then the best bet is to make sure that you invest in that state's Municipal bonds. This is because of the reason that these bonds are no longer tax free for residents of other states. That will mean that the State tax will have to be paid though the federal tax is not there.
Always spread your risk and that is good for your investments. Diversify so that some part is in municipal bonds. For higher gains you should invest some part in the stock market and you should have some part on the savings account.
This diversification will help you make money and be safe also. Then another factor is the safety of investments and these investments made into the California bonds will help you drive the overall safety of the portfolio. The returns may not be as great as stocks but they are stable and very predictable. - 23218
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The author suggests diversification using California tax free municipal bonds and independent broker dealers
posted by X - Men @ 2:27 AM
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