Boost Your Retirement Income and Avoid Taxes With This Smart Move
Though you should expect to collect some money from Social Security as a senior, and you may have a decent amount of retirement savings to tap, generating extra income during your later years is never a bad idea. You never know when costly home repairs or medical bills might creep up out of nowhere, and the more income sources you have at your disposal, the less financial stress you'll have.
That said, having different sources of income could also mean giving the IRS more opportunities to get its hands on your money. Case in point: Social Security benefits are often subject to taxes, as are retirement plan withdrawals that don't come from a Roth savings account. Interest income in your bank account is taxable, and pension payments are generally subject to taxes, too.
But what if you could boost your retirement income without adding to your tax burden? There actually is a solution that will let you do just that: municipal bonds.
Source Fool.com
