Buying Municipal Bonds: The Common Sense Guide to Tax-Free Personal Investing

Wall Street Journal staffer Andrew here advises investors that the new tax law may soon make municipal bonds the only real tax shelter availableand at minimal risk. ""Municipals'' are sold by cities and towns to finance road projects, bridges, hospitals, pollution controls, etc., and by Federal court ruling, no U.S. income tax is exacted on the interest paid. It is usually a good rate, too, notes the author, and the yield is enhanced by ``the power of compounding.'' Andrew is skeptical about conventional investment wisdom: ``technical'' stock market strategy that attempts to predict interest rates and the currently fashionable ``financial planner'' industry. His advice on various types of municipals (there currently are 1.5 million individual issues), how to find the most suitable and the mechanics of investing is informal, understandable and thorough. (February 9)