A great investment strategy if you earn a substantial income is investing in municipal bonds.
Municipal bonds are government obligation bonds that offer up to 5% return on your investment. Usually you receive two biannual interest payments from the government tax free.
For example, if you have $1,000,000 and invest it in a general obligation bond, then you will receive two payments of $25,000 a year tax free if the interest rate on the bond is 5%.
Marketing investing is also important to diversify your portfolio. Investing in mutual bond funds can also offer income as well as investing in high yielding mutual funds.
If you are interested in a fund the best thing to do is to obtain a prospectus from the fund company. A prospectus tells you who the fund managers are along with all of the holdings of the mutual fund. If a fund manager has been with the fund a long time then the fund is stable.
The great thing about mutual funds is that they offer stock diversification which lowers your market capital risk.