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The VanEck High Yield Muni ETF seeks to match the investment performance of an index that tracks the U.S. high-yield long-term tax-exempt bond market. The bonds in this fund are generally exempt ...
The best tax-free investment depends on individual financial goals and tax situations. However, Roth IRAs are highly regarded for offering tax-free growth and withdrawals in retirement.
A $3,000 refund put into a high-yield savings account or a money market account that yields 4.0 percent annual percentage yield (APY) would see about $120 in growth after a year.
The best high-yield savings accounts require no minimum balances to earn high rates of interest. Variable APY. APYs can be fixed or variable , depending on the type of deposit account.
For example, assume an investor in the 38% tax bracket is offered a municipal bond that has a tax-exempt yield of 1.0%. Using the formula above, the municipal bond's taxable equivalent yield is 1.6% (0.01/(1-0.38) = 0.016) - a figure which can be fairly compared to yields on taxable investments such as corporate or U.S. Treasury bonds for ...
In many cases, it could make sense to go with a lower-yielding tax-free bond than a high-yielding traditional bond, because the after-tax yield on the muni bond is ultimately higher.
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