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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: SAFE tax free investment Date: 3/11/1999 11:31 PM
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[[Does anyoneknow of a safe tax free investment other than munies or bonds?
Every thing that i know of has risk, C Ds are the only investment that i know of
that doesnt have risk of loss of principle ,but the interest is taxable??]].

Remember that risk and reward have an inverse relationship. The higher the risk, the greater the reward. Conversely, the lower the risk, the lower the reward.

So that is why you are stuck with municipal and/or government bonds...low risk but very low returns. And a certificate of deposit? No risk, and virtually NO return...and yes...the interest would be taxable.

With a long term time horizon, you might be surprised how a little "risk" in the right stocks in the market would pay off in spades. And beat the pants off of any muni/government bond investments.

TMF Taxes
Roy
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