Municipal bonds can provide tax-exempt income, principal stability, and liquidity for investors of all ages. They offer predictable interest payments, relative safety as most are investment grade, and tax advantages at the federal and sometimes state levels. While prices fluctuate with interest rate changes like other bonds, those held to maturity repay full principal. Municipal bonds can bring benefits to portfolios for income, preservation, or goals like college savings when paired with an individual's risk tolerance, time horizon, and liquidity needs.