Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 01-17-2016, 09:11 AM   #21
Recycles dryer sheets
Join Date: Jun 2014
Posts: 80
Originally Posted by audreyh1 View Post
I can kind of understand not wanting to pay any tax on $6 at 0.01% from a muni MM, versus $600 at 1% for the same amount deposited in a savings account, but taxable at a very high marginal rate. But after all is said and done, don't you end up with quite a bit more money in your pocket in the second case even after taxes? Just curious.
If I had say $30k in cash that I didn't need for something then I would just buy an individual muni bond. That's were the tax free interest comes from. The rest of the money just rains in from dividends etc and I let it build up to invest when it reaches a threshold. I am unsure if I will do this while retired because that will mean I am not even spending portfolio growth.
I only have about $40k currently in cash that I want to build up to $80k to pay taxes in Apr.
I don't see how I get a better deal than buying a muni-bond. I can't buy one now as I need the cash.

Neill is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-17-2016, 09:26 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 13,021
That's one of the things I use a high yield savings account paying 1% for - to hold funds for paying taxes and quarterly estimated taxes.

But most of my income is long-term capital gains and qualified dividends, so my marginal tax bracket is low. Although most of my ordinary income is subject to the 26% AMT rate. I guess that's really my tax bracket.

Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
As GM goes so goes the nation (and market), your thoughts and predictions shotgunner FIRE and Money 78 11-19-2008 07:27 PM
Wells Fargo Sweep Fund yakers FIRE and Money 4 07-31-2007 08:07 PM
Interest paid in sweep accounts modhatter FIRE and Money 10 09-20-2006 07:51 PM
Idle funds sweep investments Lakewood90712 FIRE and Money 1 04-29-2006 09:17 PM
sweep account strategy. *what is it ? zuki FIRE and Money 5 04-26-2005 10:26 AM


All times are GMT -6. The time now is 08:15 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.