Those who can focus on long-term gains should consider getting into the stock market, since the poor economy has driven the prices of stocks so low. "If you can hold the stock for the next 10 years it's a good time to buy," Satyavolu explains. Buy municipal bonds.
A bond is a formal contract to repay borrowed money with interest at fixed intervals, except in this instance, you are the lender. A municipal bond, specifically, is essentially an IOU from a city or local government agency that uses the funds to finance community projects such as sewer construction or road repairs. According to Satyavolu, bonds are a good option for cautious investors, who profit from the interest they receive and benefit from the fact bonds are exempt from federal income tax and, in many cases, state and local taxes as well. >To submit a news tip, email: firstname.lastname@example.org.
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