Taxable Municipal Bonds
At Hennion & Walsh, we are one of the nation’s leading financial services firms specializing in municipal bonds. It’s our heritage; it’s who we are. Count on us to provide you with the most appropriate, high-quality municipal bond for your portfolio. Along with specialist advice, you will receive exceptional personal service. That’s the hallmark of Hennion & Walsh.
What Are Municipal Bonds?
Municipal bonds are debt obligations issued by states, cities, counties, and other governmental entities to raise money to build schools, highways, hospitals, and sewer systems, as well as many other projects for the public good.
When you purchase a municipal bond, you are lending money to an issuer who promises to pay you a specified amount of interest (usually paid semiannually) and return the principal to you on a specific maturity date.
Municipal bonds are federally tax-free, and in-state bonds offer a state – and often local – tax exemption on interest paid to residents. Most of this section refers to munis, which are free of federal taxes.
Investing in municipal bonds provides tax-free income from federal income tax and, in some cases, state and local income tax.
Who Should Invest in Municipal Bonds?
Income-oriented investors seeking tax-free income.
Municipal Bond Features
- Dependable Income – Municipal bonds’ fixed rate of return is payable regularly every six months.
- Safety – Hennion & Walsh only offers high-quality municipal bonds as rated by Standard & Poor’s and Moody’s.
- Liquidity & Marketability – In the event you must sell before maturity, Municipal bonds can usually be sold on any business day at their current market value. This may be equal to, more, or less than the amount originally invested.
- Call Protection – Municipal bonds usually provide protection for a specific period of time against redemption or being called prior to maturity.
- Tax Advantage – Municipal bonds offer tax-free interest from federal income and, in some cases, state and local taxes.
- Minimum Purchase – You may typically invest in municipal bonds with a minimum purchase of $10,000 par value, and $5,000 increments thereafter.
All investments involve risk, including loss of principal. Past performance does not guarantee future returns. Income from certain Municipal Bonds may be subject to the Federal Alternative Minimum Tax.