Driving a Jaguar. Shopping at Neiman Marcus. Investing in municipal bonds.

These activities may seem exclusive to the rich and famous, but you don't need to be part of the elite to invest in municipal bonds. Investors in the highest tax bracket may profit most from municipal bonds' tax-exempt status, but investors in the lower tax brackets can benefit, too.

In this lesson, we'll find out how municipal bonds work, and why they are one of the last great tax breaks for investors. We'll then share Morningstar's hints for selecting a good municipal-bond fund.

Next: What's a Muni? >>