: If you live in the state that issued the bond, the interest may also be exempt from state and local taxes.
: Allow you to invest in a diversified pool of munis for a much lower minimum (as little as buying municipal bonds for dummies
: Over long periods, the purchasing power of your fixed interest payments may be eroded by rising prices. : If you live in the state that
: An issuer may "call" or repay the bond early, typically when interest rates drop. This forces you to reinvest your money at a lower rate. buying municipal bonds for dummies
: The primary draw is that interest is typically exempt from federal income tax.