Retirement Income
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Fixed Income
Munis offer tax-advantaged income and more
Following tax reform, munis' income and diversification potential still shine.
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The after-tax income potential of munis has reached multiyear highs, even after the Tax Cuts & Jobs Act reduced the marginal tax rate for most individuals. In mixed market conditions, greater emphasis on bonds of higher quality may help cushion investors amid volatility. High-yield muni bonds are still worth considering; they’ve often offered average after-tax yields comparable to high-yield corporates, but with significantly less correlation to equities.
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