If you think your portfolio is diversified, think again. You may have diversified list of stocks, some insurance funds and interests in several real estate ventures, but that might not be enough. A bond portfolio should also be a key component of your overall plan. Armed with the knowledge of how U.S. government securities work, you may want to let Uncle Sam use your money.
Maturity dates comprise the only major difference between the three types of securities.
All income derived from these securities is subject only to federal tax and is exempt from state tax in all states. Your resulting state tax break will thus vary depending on your stat's tax rate. If you would like to order this newsletter in its entirety, please click here .