Watercooler: Municipal bonds come with risks

Mcclatchy newspapers

First Published Mar 08 2013 05:07 pm • Last Updated Mar 08 2013 05:07 pm

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.

E-Muni • Provides a useful glossary of municipal bond terms, at http://bit.ly/Z0y2jY.

InvestingInBonds.com • Select the "About Municipal Bonds" link on this website, run by an industry trade group, at http://bit.ly/15U0wSZ.

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