With the recent tax cuts, many are now questioning the value of the tax benefits municipal bonds deliver. But such doubts are nothing new.

Over the past 30 years, there have been a number of tax reductions and financial crises that have raised concerns. But the Tax Reform Act of 1986, the flat tax proposal from presidential candidate Steve Forbes, and the Global Financial Crisis of 2008-2009, to mention a few, did not derail the muni market. Municipal bonds continued to deliver attractive returns for investors after all of these events.

While the past is not a prologue to the future, history does suggest the merits of ignoring the headlines. When investors adopted a buy-and-hold strategy and avoided overreacting to the news, the benefits of realizing attractive after-tax returns accrued considerably over time.