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 January 31, 2019 FUND NAME SYMBOL % OFPORTFOLIO YTDRETURN 1-YRRETURN 3-YRRETURN 5-YRRETURN 10-YRRETURN MAX LOAD EXPENSE RATIO Baird Intermediate Municipal Bond InvestorBMBSX15%0.82%2.47%0.96%1.76%2.48%none%0.55% Fidelity Intmed Muni IncomeFLTMX150.82.881.842.743.51none0.36 T. Rowe Price Tax-Free Short-IntermediatePRFSX150.481.880.751.071.98none0.51 Schwab Tax-Free BondSWNTX150.722.631.492.653.94none0.49 USAA Tax Exempt Long-TermUSTEX6.250.462.272.273.685.69none0.47 Vanguard California Long-Term Tax-Ex InvVCITX6.250.622.782.274.225.14none0.17 Vanguard Long-Term Tax-ExemptVWLTX6.250.733.022.454.184.97none0.17 Wells Fargo Municipal Bond AWMFAX6.250.643.312.573.956.24.500.75 Market Vectors Lehman AMT-Free Shrt MuniSMB150.692.210.891.071.91none0.2 1000.682.511.472.393.46 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.