Types of Municipal Securities

What this video covers

• Why general obligation (GO) bonds require voter approval and revenue bonds do not, and how backing and risk differ between the two
• How short-term municipal notes bridge cash-flow timing mismatches, and the rule that the first letter of each note (TAN, RAN, BAN, GAN) tells you the repayment source
• Why a moral obligation bond is NOT a legal obligation, and why that makes it riskier than a standard GO
• How double-barreled bonds combine a revenue source with the issuer's taxing power for dual security
• Why advance refunded (pre-refunded) bonds are typically rated AAA once U.S. Treasuries sit in escrow
• The annual appropriation risk that hangs over certificates of participation (COPs) and lease revenue bonds
• How 529 plans, ABLE accounts, and local government investment pools (LGIPs) fit under municipal fund securities, including the five-year gift tax election (up to $95,000 single filer at the $19,000 annual limit), the 15-year and $35,000 limits on 529-to-Roth rollovers, and the 10% penalty on non-qualified withdrawals