You should look at total gain after taxes.
I'd rather pay 30% (inc state) on a 20% gain
rather than nothing on a 4% gain.

On Mar 30, 4:12 pm, "W. Wells" <o...[at]nc.rr.com> wrote:
- quote -

Your only real tax exempt investments are:
1. muni bond funds- these are only tax exempt at the federal level
2. Retirement account funding- and these are either tax deferred or
use post tax dollars
3. Insurance products- these can take some finnegling so talk to a
professional.

If you go with muni bonds here is the equation to figure out if it's
worth it. Take the yield of the bond or bond fund and divide it by 1-
your tax bracket. So if the yield was 3.5% and your tax bracket was
25% it would look like this:

3.5 / 1-.25 = 4.6 so in this case you would need to find an
investment yielding 4.6% before tax to equal the 3.5% bond that is tax
exempt. Hope this helps.

I would like to hear some ideas on the feasibility of tax exempt investing
compared to regular investing. ie. paying 22% (Lt fed. tax + 7% state tax)
on an investment making 10% per year, to tax exempt investment payinng say
3.5% per year.

What are the other considerations other than putting a pencil on the
figures?