Anyone have experience in investing in munis directly?

Generally munis are very safe. But if you buy a muni today, your principal value may drop a little if interest rates climb.

3.5% returns tax free is pretty reasonable. Some of the higher yields, you may find your 5%.

I’d be good with a 5% coupon.

Since likely holding to maturity, not necessarily interested in muni ETFs (primarily goal is capital preservation).

Looks like Schwab has access to something like 40,000-50,000 munis including new issues.

Just never bought nor know anyone who has.

Do your research. Our county recently sold some revenue bonds that would scare me to death. Money used to build a 13 mil dollar peanut dryer which they will rent from the county. If they decide to leave which the dryer just north of here did last year those bonds are in trouble. I know a county official and I asked how in the world we will pay that back if they leave and he educated me on revenue bond payback. I'd say your probably safer with GOs but I am obviously not an expert. I've bought individual corporates and governments but never municipals. I'd also make sure they are reasonably liquid. Just my 2 cents. Good luck to ya.