What ultra-safe investment is currently paying a high interest rate? The answer is certain Treasury Direct bonds.  For instance, inflation-indexed Series I bonds issued from November 2021 to April 2022 are paying 7.12 percent for the first six months. Interest is a combination of a fixed rate and an inflation rate. While the fixed rate is annual, the inflation rate may change every six months. If the inflation rate remains high, so will the yield. Compare that with the extremely low rates offered on other safe investments such as certificates of deposit and savings accounts. For that reason, the sale of Series I bonds is booming. What are Treasury Direct…

It’s not what you earn, it’s what you keep. That adage applies to investment income as well as wages. Investors in tax-free bonds don’t have to worry about the federal tax implications of certain bond income, as it is tax free. While many federally tax-free bonds are subject to state and local taxes, there are tax-free bonds that are also free from state tax. Tax-free bonds are also known as tax-exempt bonds. Federally Tax-Free Bonds Issued by states, counties, cities and other governmental authorities, municipal bonds are the primary methods by which these entities raise capital for public project financing. Income from these bonds is from federal taxation. In fact,…

It’s not what you earn, it’s what you keep. That adage applies to investment income as well as wages. Investors in tax-free bonds don’t have to worry about the federal tax implications of certain bond income, as it is tax free. While many federally tax-free bonds are subject to state and local taxes, there are tax-free bonds that are also free from state tax. Tax-free bonds are also known as tax-exempt bonds. Federally Tax-Free Bonds Issued by states, counties, cities and other governmental authorities, municipal bonds are the primary methods by which these entities raise capital for public project financing. Income from these bonds is from federal taxation. In fact,…