How To Buy Municipal Bonds Suze Orman -
: Municipal bonds are generally federally tax-free.
: Orman warns that you need to be in a high income tax bracket to make them worth it; otherwise, the lower interest rate compared to taxable bonds or Treasuries might not be a good trade-off. how to buy municipal bonds suze orman
: Suze personally favors triple-A-rated, insured zero-coupon municipal bonds . These are bought at a deep discount and pay the full face value at maturity, locking in a predictable future cash flow for retirement. : Municipal bonds are generally federally tax-free
: To avoid state taxes, you must buy bonds issued by the state where you reside. Residents of tax-free states like Florida can buy munis from any state and remain state-tax-free. 2. Prioritize Bond Types and Safety These are bought at a deep discount and
: She emphasizes buying "investment grade" or high-quality bonds to minimize default risk. Podcast Episode – Suze School: Buying The Right Bonds