Local municipal general obligation bonds help fund operations or specific projects. Right now, yields for local general obligation munis are historically attractive at about 3.7%, said Cooper Howard, fixed income strategist for the Schwab Center for Financial Research. In general, the credit quality of local general obligation munis are pretty solid, said Richard Schwam, a municipal credit research analyst at AllianceBernstein. "There are so many general obligation bonds in the country that you can stay away from anything too tiny. Weinberg also recommended diversifying with multiple states, but cautioned that buying a bond outside of your state means you'll likely be subject to state income tax.

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Persons: It's, Cooper Howard, Howard, Richard Schwam, Schwam, Schwab's Howard, bode, Ian Weinberg, Weinberg Organizations: Schwab Center, Financial Research, AAA, San, Family Wealth, Pension Management, Schwab's Municipal, Bond Locations: California, New York, San Francisco