Updated: May 20, 2016
In a world of record low interest rates, where savings accounts offer less than 1% interest, investors are struggling to find a risk-free return on their money that will outpace inflation. With U.S. Treasuries no help, many people are flocking to dividend growth stocks or junk bonds.
Unfortunately, both of these can be volatile, as we’ve seen over the past year. Which is why it’s surprising so few have jumped into a better alternative: municipal bonds.
Benefits of Municipal Bonds
Munis have several advantages, and a big one is their tax-free status. Many (but not all) municipal bonds are tax free, meaning that the yield they return is actually higher than they first appear.…