The Municipal Advantage: How Much Is It Worth To You?
Municipal bonds generate interest income that is often exempt from federal income tax.
The Benefits of Tax-Exemption
The Municipal Advantage
Source: Legg Mason.
Investment Products & Strategies
A brochure indicating the important advantages of municipal bonds to investors. Includes tax-exempt bond yields compared with taxable equivalent yields.
Your financial advisor can help you develop a long-term investment plan with a balance of strategies that addresses your need for portfolio growth, income, capital preservation and risk management.
1 Certain investors may be subject to state or local income taxation. Income from “private activity” municipal bonds may be subject to federal, state or local alternative minimum taxes (AMT). Capital gains, if any, are fully taxable.
2 Please note that the analysis presented here does not account for state or local taxes, if applicable. Consult your tax advisor about your particular situation. All investments involve risk, including loss of principal.
Fixed income investments are subject to interest rate risk. As rates rise, the price of fixed income securities falls. Certain investors may be subject to state and local taxation. Income from “private activity” municipal bonds may be subject to federal, state or local alternative minimum taxes (AMT). Capital gains, if any, are fully taxable. Consult your tax advisor about your particular situation.
Legg Mason, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.