The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: 5% Capital Gains Tax Rate||Date: 12/29/2004 5:37 PM|
|Author: KenAtPcs||Number: 75057 of 123001|
Yes, generally "tax exempt" money market funds and "tax exempt" (municipal) bond funds are more appealing to those in higher tax brackets because they are left with more after taxes than in a fully taxable money market account or fully taxable bond fund.
But for those of us in the middle and lower marginal tax rates don't save as much by the "tax exempt" status so usually we in the middle and lower marginal tax rates are better off with a fully taxable money market account or a fully taxable bond fund.
There have been times when the numbers didn't quite work that way, but those tend to be relatively brief times (a couple years, for example).
It seems like perhaps this is one of those times? I almost always agree with what you write, but I have to disagree this time.
Here are current yields from Va