Answers | 1
December 11, 2013
Lynn, a triple tax free muni bond is one that avoids, 1-federal tax, 2-state tax and 3-local taxes. To benefit from all 3, you may need to reside in the locality of the bond issuer. As an example, I live in CA if I buy "triple tax free bond" from an issuer in PA I probably will not be able to avoid the tax from interest on my state income tax return. One additional note is that because the interest being paid is "tax free" it will likely be lower than a taxable bond being issued by a corporation. So your income tax rate will have an impact on your decision.
Asked by Richard Couture
Answered by Tony Villa
Financial Adviser in Livingston, NJ
Why would you do that? Your current allocation is quite conservative & you can't p...