EPISODE · Mar 12, 2021 · 5 MIN
#46: The Finance Flash Go Podcast | Important Topics About Money | Municipal Bonds
from Finance Flash Go | Create and Grow Wealth | Lessons, Tips, and Strategy · host Taylor Brana
Today on the Finance Flash Go! podcast, we are going local and organic as we discuss municipal bonds! A municipal bond is a bond (or “debt” or “IOU”) issued by a state or municipality to fund public works. Like other bonds, investors lend money to the issuer for a predetermined period of time, also known as the maturity of the bond. The issuer promises to pay the investor interest over the term of the bond (usually twice a year), and then return the principal back to the investor when the bond matures - that’s how all bonds work. The only difference is a municipal bond is lended locally to a municipality rather than the state or federal government. Municipal bonds are considered quite safe with a low default rate and are very tax efficient as their interest is tax free. This is in contrast to most bonds that are tax ineffiicent. Therefore, muni bonds are good to hold in a taxable account while other bonds should usually be held in a tax advantaged account. You can also of course by index funds of municipal bonds. Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!
What this episode covers
Today on the Finance Flash Go! podcast, we are going local and organic as we discuss municipal bonds! A municipal bond is a bond (or “debt” or “IOU”) issued by a state or municipality to fund public works. Like other bonds, investors lend money to the issuer for a predetermined period of time, also known as the maturity of the bond. The issuer promises to pay the investor interest over the term of the bond (usually twice a year), and then return the principal back to the investor when the bond matures - that’s how all bonds work. The only difference is a municipal bond is lended locally to a municipality rather than the state or federal government. Municipal bonds are considered quite safe with a low default rate and are very tax efficient as their interest is tax free. This is in contrast to most bonds that are tax ineffiicent. Therefore, muni bonds are good to hold in a taxable account while other bonds should usually be held in a tax advantaged account. You can also of course by index funds of municipal bonds. Please enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected], and please be sure to check out Jordan Frey’s blog prudentplasticsurgeon.com where he gives great financial advice. A brief disclaimer While we are providing knowledge and awareness around financial topics in this show, we are not held responsible for any financial decisions you choose to make in response to the podcast. We hope to provide accurate information in regards to money and different methods of wealth creation, but it is always the learner’s responsibility to due their due diligence before making important financial decisions. We hope you enjoy the show and thanks for tuning in, and if you like the podcast please subscribe, share, and leave us a review on the podcasting platform of your choice!
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#46: The Finance Flash Go Podcast | Important Topics About Money | Municipal Bonds
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