Before buying, you must decide between the two primary categories:
You can purchase these through various financial institutions:
: Self-directed platforms like Fidelity , Charles Schwab , or Interactive Brokers allow you to research and buy bonds directly. how do you buy municipal bonds
: More accessible for beginners, offering professional management and instant diversification for as little as $100.
Buying municipal bonds ("munis")—debt securities issued by state and local governments—is a popular strategy for investors in high tax brackets seeking federal tax-exempt income. You can buy them directly as individual bonds or indirectly through managed funds. 1. Choose Your Investment Method Before buying, you must decide between the two
: Best for high-net-worth investors (often requiring $100,000+ for a diversified portfolio) who want to hold to maturity. Most individual bonds have a $5,000 minimum .
: Tailored portfolios of individual bonds managed by professionals, typically requiring a high minimum investment like $350,000 . 2. Select a Platform You can buy them directly as individual bonds
: Provide personalized advice and research but typically charge higher fees or markups.