Note: This article is courtesy of Iris.xyz
By Frank Holmes
Who says municipal bonds aren’t sexy?
They were the top fixed-income asset class of 2015, compared to U.S. Treasuries and corporate bonds, and they even outperformed the S&P 500 Index.
Still not convinced? Check out the following ways short-term munis can make you scream “Oh yes!”
1. Tax. Free. Income.
One of munis’ most titillating qualities is that they’re tax-free at the federal level.
But they can also be tax-free at the state level depending on where you live. There are only seven states without an income tax, meaning you’re on the hook if you live in those other 43 states. Municipal bonds can minimize the burden.
2. Capital preservation
Because munis are tax-free, you get to keep more of your wealth in your own pocket.