Muni Bonds

Municipal bonds, or "munis," are financial investments issued by state or local governments to fund public projects like schools, roads, or hospitals. When you buy a muni bond, you're lending money to the government entity, which agrees to pay you back with interest over time. These bonds are often tax-exempt at the federal level and sometimes at the state and local levels, making them attractive to investors seeking tax-efficient income. Munis are considered relatively safe, especially those backed by taxing power, but they still carry some risk depending on the issuer's financial health.