Today we welcome Bill Walsh, President of Hennion & Walsh. They may not be the most exciting investments around, but according to one of the country's leading experts on the subject, tax-free municipal bonds can easily serve as a solid foundation for any investor's portfolio, providing both predictable and tax-free income year-in and year-out. "You can purchase a high-quality municipal bond right now and get a return of around 5% tax-free, which is equivalent to almost 8% from a taxable investment for investors in the highest tax bracket," says Walsh. Bill says one key to successfully investing in tax-free municipal bonds is to know what is backing the issue. Essential purpose revenue bonds and general obligation bonds are usually a good place to start. The ability to levy taxes is a pretty strong guarantee that the borrower will be able to pay out interest for the life of the bond and that the bond will retain its value at maturity. For more information visit www.hennionandwalsh.com
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