How To Sidestep The Tax Man... Legally!
Tired of forking over a large percentage of your hard earned returns to the government? There may be a way to cut out Uncle Sam.
Cheat on your taxes? Never!!
Why would you when you can sidestep the IRS legally - with muni bonds!! That’s right. Muni bonds are exempt from federal taxes and from most state taxes, as well.
“A 4% tax free return is the equivalent of making 6% after taxes,” explains Ben Thompson of Samson Capital.
When Less Is More
Muni Yield Taxable Equivalent
Source: Samson Capital
“And with the Bush tax cuts expiring at the end of the year tax-exempt investments are going to become more valuable,” adds Thompson.
What’s that you say? No time to put together a thoughtful basket of state or local bonds. Guess what? Some financial firms will do the leg work for you.
Take a look:
* SPDR Barclays Muni Fund
* iShares National Muni Bond Fund
* Vanguard Short Term
* Vanguard Long Term
Intrigued? Want to hear more about investing in muni bonds!
Check out our entire interview with Ben Thompson of Samson Capital. Watch the video now.
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Trader disclosure: On April 13, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (CSX) call spread; Najarian Owns (LVS) call spread; Najarian Owns (JPM) call spread; Najarian Owns (BAC) Calls; Najarian Owns (C) Calls; Najarian Owns (CSX) Call spread; Najarian Owns (LVS) Call spread; Najarian Owns (JPM) Calls; Najarian Owns (PCX); Najarian Owns (TXN) Calls; Najarian Owns (VLO) Calls; Najarian Owns (YUM) Call Spread; Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Finerman's Firm Is Short (IJR), (MDY), (IWM), (IYR); Finerman's Firm Owns S&P Puts; Finerman's Firm Owns (JPM); Finerman Own (JPM) ; Finerman Owns (BAC); Finerman's Firm Owns (BAC); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WFC) Preferred; Finerman Owns (WFC) Preferred; Finerman Owns (YUM); Seymour Owns (CHL), (DRYS), (GE), (BAC), (EEM), (F), (INTC), (LVS), (SBUX); Seymour's Firm Owns (POT)
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