Take advantage of municipal bond information resources to help you purchase municipal bonds, or "munis" from city, county and state governments. Find municipal bond information to help you see what the project money is going for (e.g. a highway, sewer systems, a new school or a hospital, etc.).

Use the municipal bond industry research that you find to learn that the interest paid to the owner of the municipal bond is exempt from Federal taxes, and often you as the investor are exempt from state and local taxes as well if you reside within the same state in which you municipal bond or bonds were issued.

To find the right municipal bond industry resources for you:

1. Begin with general municipal bond information to understand what they are, who they benefit and where you can find them.

2. Find out what reference materials for municipal bonds the U.S. government has to offer since they are government backed bonds.

3. Use newsletters as an up-to-date municipal bond industry resource.

Action Steps
The best contacts and resources to help you get it done

Start with basic municipal bond information

Find out about the basics of municipal bond information to help you understand the terms, the processes and the investment risks (or lack of) before you jump into the market.

I recommend: Find an overview of info about municipal bonds from The Securities Industry and Financial Markets Association. Learn about municipal bond basics from Forbes' Investopedia. Look at government bond yields from Bloomberg.com. Check out the municipal bond calendar from MuniNet Guide. There you can find when new and upcoming municipal bond issues are happening.

Find even more municipal bond industry resources

Keep after general knowledge on the topic, and continue to familiarize yourself with municipal bond industry research.

I recommend: Find out more info on municipal bonds from UBS. InvestorGuide.com offers a comprehensive look at municipal bonds. thismatter.com also offers additional information about municipal bonds.

Take advantage of government municipal bond industry reports and information

Since municipal bonds are government backed, you can find a number of municipal bond industry resources from national, state and local government sources.

I recommend: See what the U.S. Securities and Exchange Commission has to say about municipal bonds. Check out the Fair Bond Ratings page from the State Treasurer's Office. Find out additional information from the Municipal Securities Rulemaking Board.

Use publications as one of the most up-to-date municipal bond information resources

Keep up-to-date on the latest municipal bond industry reports and information by signing up for regular newsletters.

I recommend: Sign up for a free email newsletter subscription to MunicipalBonds.com. From those you can learn about Worst Spreads Reports, Negative Yields Reports and more. Municipal Bond Newsletter is another source to sign up for free eNewsletters. Read about individual corporate and municipal bond defaults monthly from the Distressed Debt Securities Newsletter.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Since they are government backed, municipal bonds generally make safe investments. Speak to a qualified investment professional, though, to review current municipal bond information in your area and discuss what your investing options are.