Jeff Brown, CPA, CFP

One way to provide income on a tax free basis is through the use of municipal bonds.  A Tennessee municipal bond is free from both federal and state income taxes.  Currently, yields on municipal bonds are low due to the low Federal Funds target rate.  But, when you factor in the tax savings, many times the “tax equivalent yield” is greater than a comparable taxable bond or certificate of deposit.  Give us a call and let us show you how to generate tax-free income through municipal bonds. 

Authored by:  Jeffrey O. Brown, CPA, CFP

*Subject to availability and change in price. Subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Interest income may be subject to the alternative minimum tax.  Federally tax-free but other state and local taxes may apply.