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Tax-free municipal bonds

<strong>Tax-Free Municipal Bonds: A Smart Choice for the Tax-Conscious Investor</strong>

Tax-Free Municipal Bonds: A Smart Choice for the Tax-Conscious Investor

At Tidewater Financial, we understand the value of tax-efficient investing. That's why we're proud to offer tax-free municipal bonds as a key part of our portfolio. These bonds are not just popular investment choices; they're also powerful tools for tax savings. Under current federal income tax laws, the interest you earn from these bonds is exempt from federal income taxes, and often from state and local taxes as well, depending on where you reside. This could mean enjoying your investment returns without the burden of income taxes, although they may be subject to the alternative minimum tax (AMT).

Why Choose Tax-Free Municipal Bonds?

Our tax-free municipal bonds come with several advantages:

  • Tax-Free Income: Enjoy attractive current income that is free from federal and possibly state and local taxes.
  • Predictable Income Stream: Benefit from a steady, tax-free income flow.
  • Diverse Investment Options: Tailor your portfolio with choices in investment quality, maturity, issuer type, bond type, and geographical location.
  • Liquidity: Access your funds at the current market price if you need to sell before maturity.
  • Range of Securities: Choose from short-term notes for immediate needs or long-term bonds for financing larger, future projects.

It's important to note that investing in municipal bonds carries risks, including the possibility of issuer default on interest and principal payments. Market fluctuations can also affect bond prices, impacting the value if sold before maturity. Additionally, interest on certain bonds may be subject to the federal alternative minimum tax, and capital gains, if any, are taxable.

<strong>Exploring Types of Tax-Free Municipal Bonds</strong>

Exploring Types of Tax-Free Municipal Bonds

Exploring Types of Tax-Free Municipal Bonds

At Tidewater Financial, we offer two primary types of tax-free municipal bonds:

  1. General Obligation Bonds: These bonds are backed by the full faith and credit of the issuer and often supported by their taxing power, be it unlimited or limited.

  2. Revenue Bonds: These bonds are secured by specific revenue sources like tolls, charges, or rents from facilities built with the bond proceeds. They finance public projects such as toll roads, bridges, airports, water and sewage facilities, hospitals, and subsidized housing.

Partner with Tidewater Financial for Your Tax-Free Bond Investments

Our team at Tidewater Financial is here to guide you in selecting the right tax-free municipal bonds to meet your investment goals. We prioritize your financial well-being, providing expert advice and personalized investment solutions.

Discover how tax-free municipal bonds can enhance your investment portfolio. Contact us today to learn more.

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*A diversified portfolio does not assure a gain or prevent a loss in a declining market. There is no guarantee that any investment strategy will be successful or will achieve their stated investment objective. Fixed Income investing ("bonds") involves credit risk, or the risk of potential loss due to an issuer's inability to meet contractual debt obligations, and interest rate risk, or potential for fluctuations in an investment’s value due to interest rate changes. Bond prices and interest rates move inversely as interest rates rise, bond prices fall and as interest rates fall, bond prices rise.Your Future