There are many investments that offer tax advantages to investors. Tax free bonds, like municipal bonds, are one popular choice for high income earners and retirees. That idea of not having to pay taxes on investment earnings will always get attention, but are you getting the best return on your money? To find out, you need the tax equivalent yield on a tax-free bond to know whether it offers a better return than a taxable bond.
Given the choice between a taxable and tax-free bond or bond fund with the same amount of risk, credit quality, and maturity, it’s easy to pick the one with the higher yield. In this case, there’s one problem. It is an apples to oranges comparison. Continue Reading…
Have you ever picked a number and doubled it over and over again until you can’t do the math in your head? The magic of compounding drives the numbers so high, so fast. Of course, this works with money too, just at a slightly slower pace. It’s called compound interest and it’s one thing all of us can take advantage of now no matter how investment savvy you are.
The tax code is full of ways to lower to your taxes. The Saver’s Credit (formerly the Retirement Savings Contribution Credit) is a tax credit for something we should be doing anyways, saving for retirement. This is on top of the great tax benefits already offered by retirement plans. With a little