Roland Stoever
Stoever Glass & Co., Inc.
Phone: (212) 952-1910
P: (800) 223-3881
E: roland@stoeverglass.com

The number one reason that people buy municipal bonds is for the tax advantage. Municipals are tax free by the county and the state. They are also some of the safest investments out there. Municipal bonds have a default rate of less than one/tenth of one percent. A municipal bond is basically a pool of investments where a manager will charge you a fee to manage your positions. He will be lumped in with many other shareholders. There can be some big advantages to that for small investors. If you do not have adequate funds for diversification, you will have a manager that will manage your portfolio for you. That means you will be paying a management fee every single year.