Municipal bonds are great for tax-free income.
However, there are some very big disadvantages compared to the Financial Bunker. Together, there is a place for both of these.
Municipal bonds have several risks to be concerned about.
Market fluctuation, credit risk, and the lack of the ability to compound. Tax-Free mutual funds have their set of risks as well.
Today, interest rates are at their all time low. For bond investors this means when rates start rising, the value of bonds will fall.
This is fine if you intend to hold your bonds until maturity. But what if you need to sell because you need the money? You might take a loss.
More and more public debt is coming under pressure. The ability to get local citizens to approve more taxes to float bonds is going to be challenge.
As time moves forward, it’s possible there will be more defaults on municipal bonds.
Enter the Financial Bunker
Unlike municipal bonds, there is no market risk with the Financial Bunker.
You have a legal contract protecting your money vs. the promise of the citizens paying taxes on those bonds. (Insured bonds are a different matter with their own set of risks. In the financial crisis, even those came under pressure.)
Only the bunker holds the ability to compound.
Municipal bonds are good.
The Financial Bunker is great!