This recommended investment portfolio is one of 20+ mutual fund portfolios that we've assembled for investors with different time horizons and risk-tolerance levels to consider. Visit our Portfolio Finder to see them all. View Another Investment Portfolio: Aggressive ETF Portfolio Balanced ETF Portfolio Balanced Mutual Fund Portfolio Contrarian ETF Portfolio ETF Portfolio for Growth and Income ETF Portfolio for Long-Term Growth Fidelity Moderate ETF Portfolio High-Income Combo Portfolio High-Yielding ETF Portfolio Higher Risk, Higher Yield ETF Portfolio Higher Risk, Higher Yield Mutual Fund Portfolio Kiplinger 25 for College: 6-10 years away Kiplinger 25 for Income: 5 Years or less Kiplinger 25 for Retirement: 11+ years away Lower Risk, Lower Yield ETF Portfolio Lower Risk, Lower Yield Mutual Fund Portfolio Multi-Asset ETF Portfolio Multi-Asset Mutual Fund Portfolio Overseas Portfolio for ETF Investors Schwab Growth ETF Portfolio Super-Simple Balanced Mutual Fund Portfolio Tax-Exempt Income Portfolio Vanguard Conservative ETF Portfolio Vanguard Index Funds to Buy and Hold Forever Tax-Exempt Income PortfolioFor when taxes really matter. 100% Bonds | Data through October 31, 2018 FUND NAME SYMBOL % OFPORTFOLIO YTDRETURN 1-YRRETURN 3-YRRETURN 5-YRRETURN 10-YRRETURN MAX LOAD EXPENSE RATIO Baird Intermediate Municipal Bond InvestorBMBSX15%-1.04%-1.44%0.47%1.33%2.99%none%0.55% Fidelity Intmed Muni IncomeFLTMX15-0.83-0.571.462.43.67none0.36 T. Rowe Price Tax-Free Short-IntermediatePRFSX15-0.23-0.720.360.782.24none0.51 Schwab Tax-Free BondSWNTX15-1.12-0.91.212.384.23none0.49 USAA Tax Exempt Long-TermUSTEX6.25-1.15-0.062.143.695.66none0.47 Vanguard California Long-Term Tax-Ex InvVCITX6.25-1.75-0.812.234.065.17none0.19 Vanguard Long-Term Tax-ExemptVWLTX6.25-1.58-0.592.343.915.11none0.19 Wells Fargo Municipal Bond AWMFAX6.25-0.260.182.473.955.994.500.75 Market Vectors Lehman AMT-Free Shrt MuniSMB150.11-0.660.370.742.18none0.2 100-0.76-0.7184.108.40.206 0.41 ** Closed to new investors. # Closed to new investors; other share classes are available. r Maximum redemption fee charged when you sell shares. s Front-end load; redemption fee may apply. — Fund has not existed for the specified time. Source: Morningstar, Inc.. If you're in the maximum federal income-tax bracket, municipal bonds are a no-brainer. A yield of 2.3% in tax-exempt interest beats a 4% in taxable interest for someone who faces the top federal rate of 43.4%. But lower-income taxpayers should consider munis, too — they're sound, poular investments with excellent vital signs. Our portfolio has a mix of 30% short-term funds, 45% intermediate-term bonds, and 25% long-term. We steer clear of "junk" munis.