A 1-Click “Tax Hack” for 5.3% Tax-Free Yields
June 13, 2018 at 06:00 AM EDT
Most “high bracket” investors love the idea of tax-free muni bonds. But they aren’t sure where to buy them, and often end up using exchange traded funds (ETFs) as their vehicle of choice. Bad idea. Muni ETFs provide a smooth but unfulfilling ride. The popular iShares National Muni Bond ETF (MUB) for example has rewarded its investors with a drama-free decade. Prescient investors who foresaw the big crash of 2008 and piled into munis saved themselves a year of heartburn and earned $50,000 in Federal tax-free income on every $100,000 they saved from stocks: MUB is Steady, But Unspectacular Stocks, as usual, were better over the long run.… Read more
