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How To Sidestep The Tax Man... Legally!

Tuesday, 13 Apr 2010 | 5:44 PM ET

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.

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When Less Is More
Muni Yield Taxable Equivalent
4% 6%
Source: Samson Capital

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“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.

Uncle Sam is Going to Collect
Tax-friendly investments to make the most of your money, with Ben Thompson, Samson Capital.




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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)

For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients|
Edwards Owns (GS) for Clients

For Citi analyst Donald Fandetti
Citi Owns (AXP)
Citi Owns (COF)
Citi Has Provided Baking Services To (AXP)
Citi Has Provided Baking Services To (MA)
Citi Has Provided Baking Services To (COF)
Citi Expects To Receive Compensation from (AXP), (V), (MA)
Citi Has Acted As Manager or Co-Manager Of Offering of (AXP), (COF)
Citi has Managed a Securities Offering of (YUM)
Citi Has Received Compensation from (YUM)
(YUM) is an investment banking client of Citi



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