Municipal Bonds — Buy

The Investor's Guide to Municipal Bonds in 2026: Tax-Free Income in a Changing Market

: With the yield curve steepening, the "sweet spot" for many investors is currently in the 15- to 20-year maturity range, offering attractive income without the extreme volatility of the longest-term bonds. How to Buy: Three Main Paths buy municipal bonds

: Most states entered 2026 with solid fiscal positions and record-high "rainy-day" reserves to weather potential economic slowdowns. The Investor's Guide to Municipal Bonds in 2026:

Credit quality should remain stable. Growth in tax revenues surged in 2021 and 2022 but have since come back down to their longer- Charles Schwab Growth in tax revenues surged in 2021 and

: For an investor in the top federal tax bracket (37% plus 3.8% NIIT), a muni yield of 3.6% is equivalent to a taxable bond yielding roughly 6.1%. Some long-term munis are reaching tax-equivalent yields north of 7%.