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The State of NJ itself has huge unfunded pension liabilities. Its credit rating is not good. But within the state there are probably many munis that meet requirements to be double tax free in NJ and may be more secure.

NJ has a variable or progressive income tax rate. In lower brackets the rate is reasonable but it rises rapidly to 11% or more. Compare the yield from a single tax free muni after taxes with the yield of the double tax free NJ muni. The single tax free is probably a better choice unless you are in the higher NJ tax brackets.

Note that this is a long bond fund. It will be sensitive to increases in interest rates. As rates are at historic lows, you will always be at a loss unless or until interest rates return to the current level--which may not happen in your life time.

To avoid the interest rate problem, consider buying the bonds themselves. If you hold to maturity, they will pay face value regardless of interest rates. It usually requires a minimum of $10K to play. Any broker or bond dealer will have bonds to offer at the maturity and bond rating you choose. Then you get regular checks and avoid the interest rate risk. But you must hold to maturity. Selling before maturity is possible in an emergency, but usually costly.
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