By investing in a money market fund, you can earn the current risk-free rate while enjoying the ... If you're in a high tax bracket, the yield you receive net of taxes can be significantly lower.
High yield compared to competing municipal funds Earnings are exempt from federal (and some state) income tax No minimum investment Low yield compared to other types of money market funds Not a ...
"If tax efficiency is your primary focus, consider investing in a municipal money market fund, where most earnings are typically free from federal taxes," Schulman says. "These funds generally ...
When the returns from these various bonds are pooled into the fund's distributions, the overall tax efficiency diminishes. Consider the Vanguard Total Bond Market ETF (ticker: BND), a popular bond ...
and tax profession for more than 13 years, working with individuals and a variety of companies in the health care, banking, and accounting industries. Government money market mutual funds include ...