Jay Smith, a retired engineer, is a risk-averse person. He was quite satisfied with his portfolio which consisted mostly of tax-free municipal bonds. However, his financial planner told him that, although tax-free, municipal bond interest is taken into account in calculating social security taxes. Jay believes that his financial planner is trying to sell him something and is seeking a clarification from you.

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The Answer of Jay Smith, a retired engineer, is a risk-averse person. He was quite satisfied with his portfolio which consisted mostly of tax-free municipal bonds. However, his financial planner told him that, although tax-free, municipal bond interest is taken into account in calculating social security taxes. Jay believes that his financial planner is trying to sell him something and is seeking a clarification from you.

Jay Smith, a Retired Engineer, Is a Risk-Averse Person