Watercooler: Municipal bonds come with risks
State and local governments use municipal bonds to raise money for public-service projects.
This type of bond can provide an attractive tax exemption for investors. But anyone interested in municipal bond investing should also understand the risks that can accompany "munis." Here are some useful sites:
U.S. Securities and Exchange Commission • Offers municipal bond basics and background, at http://1.usa.gov/VQFKzN.
Investopedia.com • Covers municipal bond basics, risk factors and buying strategies, at http://bit.ly/91wcmQ.
AARP • Answers nine questions about municipal bonds, at http://bit.ly/IGWJwC.