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Sister has come into wealth, and everyone wants it!

Dear Dave, My sister recently received a large sum of money through an inheritance. Everyone seems to have a different idea about what kind of how she should invest it. The last two or three people she’s talked to have recommended municipal bonds. What do you think? Rudy

Dear Rudy, Boy, how many times have I heard this story? You get a little money and the sharks start circling.

Municipal bonds aren’t the best or the worst investments you can make. They’re tax-free income, and their yield can be just as good - or better - than corporate bonds or T-bills. But municipal bonds can be volatile just like any other kind of bond. If a city gets into financial trouble, you can easily lose money in the deal.

Raed more at Questions and Answers About Municipal Bonds and Real Estate

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