Treasury securties vs import tax exempt bonds?
Answers:
Treasury securities and U.S. Savings Bonds are subject to federal income rates but not state income import tax. Tax-exempt bonds pay packet lower interest rates but are not subject to federal income charge. They may or may not be subject to state income tariff. Most other investments are subject to both federal and state income tariff.
What to buy depends on what charge bracket you are within.
not sure
export tax exempt bonds are apposite if you are wealthy
say-so you find 5% levy free on a million, its resembling 1K per week, no tax
put the second million into stocks and genuine estate I feel
The info on Treasury Bill/Notes/Bonds vs. municipal bonds have already be given. However, Series I Savings Bonds are tax-deferred. You may purchase up to $30,000 respectively year. The interest rewarded is comprised of a fixed rate (for the go of the bond - 30 yrs) and a adjustable rate related to the consumer price index (i.e. an inflation rate). Each May 1st and November 1st a topical fixed is set for bonds purchased between May 1 and Oct 31. This rate remains for 30 years. Every 6 months an adjustable rate is determined; this rate will change every 6 months throughout the 30 year enthusiasm of the bond.
The bonds must be held for 5 years or you will lose 3 months interest. For bonds purchased between 5/1/07 and 10/31/07 the fixed rate is 1.30 and the adjustable rate is calculated from the 6 month inflation rate (1.21% per 6 months). The total rate is 0.013 + 2 x .0121 + .013 x .0121 x 100 = 3.73573% rounded to 3.74%. Every 6 months this rate will adjustment due to change contained by the rate of inflation.
No tariff is due on the compounded interest until the bond is cashed in