I'm not a math weenie but the calculation of the tax rates and the effective interest after tax deduction looks pretty good. However, those rates will drop with the new tax law.Regardless, you should still be able to invest and receive a higher rate that 4%. However, since we are comparing after tax interest to the rate of return, you should figure the rate of return after taxes.Therefore, estimate the rate of return on your investment, multiply that rate times (1-tax rate) to calculate your after tax rate of return. Then compare that rate to the 3.75% or 4% and you will be able to tell which is better.CJ
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