Q: I make enough money to where I am getting tired of paying taxes. Since the so-called tax reform was passed, I have fewer deductions to take. Should I start investing in municipal bonds?
A: Municipal bonds can be a great source of tax-free income when they are used correctly. However, whether or not muni bonds make sense for you depends on several things, including your overall investment objectives and your personal marginal tax rate.
Before you buy muni bonds, consider carefully if bonds generally should be part of your portfolio. Bonds might fit for several reasons.