Tax-Free Bonds Offer Higher After Tax Income Than Taxable Options
The article explains that tax-free investments can yield more spendable income than higher yielding taxable investments. It cites a 28 percent bracket where a 7.64 percent taxable yield matches a 5.5 percent tax-free bond, due to exemption from federal taxes on interest.
Tax Free Investments for Long term Tax Relief
This article explains tax free investments including municipal bonds unit trusts and tax free mutual funds. It outlines how federal and sometimes state taxes are avoided on interest and dividends, notes differences in maturity liquidity and cost, and suggests consulting an Edward Jones representative to tailor a plan.
MENTIONED IN THIS ARTICLE
Edward D. Jones & Co
Best of Both Worlds in 1993 Interest Rates Slide
The piece notes 1993 saw 20 year low rates and cautions on predicting future moves. It advises building a resilient, diversified portfolio to weather varied economic conditions. It highlights U S Treasury securities as a safety-oriented long term option.
MENTIONED IN THIS ARTICLE
U.S. Treasury Securities
Safest U S Treasuries Offer Flexibility and Laddering
U S Treasuries provide semiannual income, tax free at state and local levels, and vary from three months to 30 years. Shorter maturities stay more price stable, while longer ones offer higher yields. Diversification by maturity, or laddering, maximizes liquidity and protects income.
MENTIONED IN THIS ARTICLE
U.S. Treasuries
United States
Laddering U.S. Treasuries for safety and liquidity
The Moores invest 80000 in two, five, seven, and ten year Treasuries to balance higher long term rates with funds maturing in two years. This laddering approach preserves liquidity for home upgrades while keeping exposure to longer term yields.
MENTIONED IN THIS ARTICLE
U.S. Treasury
Brian
Judy Moore
U.S. Treasuries
Moores
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Bill Henningsen
Ottawa
New York
Treasury Securities