Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Muni Bond question
Old 12-22-2012, 09:35 AM   #1
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 66
Muni Bond question

Can any of you guys point me in the direction to a site where I can put in my federal and state income "effective tax rates" so I can figure out at what point it makes sense to buy Muni's vs other investments such as CD's, and taxable bonds, etc.?

Thank you
__________________

__________________
marc515 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 Early-Retirement.org 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 12-22-2012, 09:42 AM   #2
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,465
Quote:
Originally Posted by marc515 View Post
Can any of you guys point me in the direction to a site where I can put in my federal and state income "effective tax rates" so I can figure out at what point it makes sense to buy Muni's vs other investments such as CD's, and taxable bonds, etc.?

Thank you
Morningstar has a good set of basic tools. http://screen.morningstar.com/BondCa...quivalent.html
__________________

__________________
MichaelB is offline   Reply With Quote
Old 12-22-2012, 10:30 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,439
If you take the muni bond rate divided by (1-t) you will get the taxable rate equivalent.

t is your marginal tax rate (the rate on the last dollar of income).

So for example if you are in the 28% tax bracket and are looking at a muni yielding 3% earning 3% tax-free is the same as earning 4.2% and paying 28% in tax.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 12-22-2012, 10:37 AM   #4
Recycles dryer sheets
 
Join Date: Sep 2012
Posts: 66
Thanks guys!
__________________
marc515 is offline   Reply With Quote
Reply


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


 

 
All times are GMT -6. The time now is 07:38 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.