Suze Orman considers municipal (muni) bonds a cornerstone for safety and tax-free income, famously investing a significant portion of her own wealth in them. To buy them "Suze-style," you must prioritize security over high yields and ensure you are in a tax bracket where the benefits outweigh the lower interest rates. 1. Check Your Tax Bracket First
: To avoid state taxes, you must buy bonds issued by the state where you reside. Residents of tax-free states like Florida can buy munis from any state and remain state-tax-free. 2. Prioritize Bond Types and Safety how to buy municipal bonds suze orman
: She emphasizes buying "investment grade" or high-quality bonds to minimize default risk. Podcast Episode – Suze School: Buying The Right Bonds Suze Orman considers municipal (muni) bonds a cornerstone
: Orman warns that you need to be in a high income tax bracket to make them worth it; otherwise, the lower interest rate compared to taxable bonds or Treasuries might not be a good trade-off. Check Your Tax Bracket First : To avoid
: Municipal bonds are generally federally tax-free.