The WSJ tossed out an interesting idea a few days ago essentially saying “if you’re portfolio is in the crapper, have you considered investing in crappers?”

It’s a funny idea, but once you begin to think about it, it actually makes a lot of sense.

So they brought up the idea of investing in municipal bonds since it’s the state municipalities that have to borrow the money from somewhere, and pay back their investors with tax free interest. 

The video below describes some of the easiest ways to invest in municipal bonds, as well as a few advanced items to look for if you want to buy individual muni bonds from your own state for the tax advantages.

As the video states, their are several ways of investing in municipal bonds but a plain vanilla municipal bond mutual fund or ETF is generally the best solution for novice bond investors (like me).

Photo by AnyaLogic