I think it is necessary to point out that although Muni bonds have attractive features, including higher after tax yield than certain other securities they also pose significant risks, including PRICE RISK and CREDIT RISK. Muni prices move inversely to interest rates. In simple terms, this means that if rates go up, bond prices (i.e. the price you can sell the bond for on the open market prior to maturity) goes down. Depending on the duration (how much time left to the maturity date), even small changes in rates can cause HUUGE fluctuations in price. Anyone buying bonds today needs to understand that rates are at historically low levels, and as a result, the risk of market declines is significant if rates move up. In general, the higher the yield, the longer the duration and the greater the price risk. Also, many of these bonds have significant CREDIT RISK. This is the risk that the issuer will not be able to pay the interest or principal at maturity. This has happened before, and WILL happen again. Just need to watch the Detroit, San Bernardino CA or Puerto Rico situations if you doubt it. As I've written elsewhere, I agree that bonds and particularly sovereign debt, can be described as the "Mother of all Bubbles", and I've predicted it will not end well for bond investors.