Have extra money to invest, looking for most tax efficient vehicle

[gride50]

I am in the 25% fed tax bracket and have $90k in savings account and looking to move $50k-$60k. I would not like to generate any interest or dividend income that would be taxed. I already invest in both Roth and 401k. I would also like to invest part of each paycheck in the same manner.

Are municipal bonds or municipal bond funds my only choice? I am in my mid 50's and have 30% of portfolio allocated to bonds, so not sure if I should increase allocation.

Would appreciate any feedback regarding best investment choices.

Thanks

 

[Dash man]

I think your best bet would be to investigate individual growth stocks. They would not be taxable until you sell them. However, I think you're making a mistake trying to totally avoid taxes. If you can find a dividend paying growth stock, I think your overall return has a chance to be better than a "tax efficient" investment. You should be concerned with your after tax return, not avoiding taxes in my opinion.


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[sengsational]

Just curious, do you have a kid in the 11th grade?

 

[Senator]

I assume that you have no credit card debt, and have a low (<4%) mortgage rate. If not, pay down debt that is more than ~5% first.

Then, look at index ETFs. Growth stocks are fine, but sometimes they do not grow. Look at IVW (S&P 500 growth) as a free ETF trade at Fidelity if you want growth, Or even IVV (S&P 500)

 

[RetireAge50]

Deferred compensation account if available to you.

Charitable giving account is tax deductible and tax free coming out.

Stocks taxed favorably and deferred.

Ibonds are tax deferred.






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[jerome len]

I'd buy muni bonds that take you to a 60/40 ratio of stocks to bonds, especially if you're in an income tax State. I'd be careful of a long term mutual unless you'll plan on hanging on to them for a long time.

 

[LOL!]

Perhaps the most tax efficient investment is one that loses money because then you get to take a tax deduction for that. Is that really what you want?