For more conservative investors, high-quality tax-free municipal bonds can be the way to go. “If you’re looking for income, cash is a bad idea because cash gives you no income and you have to pay taxes on it,” said Bill Walsh, president of Hennion & Walsh in Parsippany, N.J., which focuses on munis. “You should buy high-quality municipal bonds, which could yield 3.5 to 4 percent.”

Click here to read the entire article.