How Do You Buy California Tax-Free Municipal Bonds?
States use bonds as a way to raise money for infrastructure projects like schools, roads, housing, parks, levees and other public facilities. California bonds also finance research and development related to stem cell research. The investor agrees to lend California a certain amount of money in exchange for a predetermined interest rate. As municipal bonds (also called munis) are usually tax-free, the interest rate is lower than the rate found on comparable bonds issued by corporations. Open a brokerage account at one of the participating brokerage houses listed on the most recent offering. This information is available on the state of California’s website. You must have an account with one of these firms in order to purchase bonds. Research the bonds or notes offered. Download the Preliminary Official Statement for the bonds to find out more information about the maturity dates and the types of projects they will be funding in order to make the most informed decision about which bond
