Municipal Bonds
Our tax man suggested looking into municipal bonds as we paid too much in taxes from CD’s in 2023. What do you think? Can they be purchased on our own (like Treasury Bills) instead of through our Edward Jones account?
Terry Says
I understand your “tax man’s” point of view. But the sad fact is that individuals get ripped off hugely in the purchase of municipal bonds. They inevitably pay too much, and it’s not easy to “price” muni bonds because they are not listed on an exchange!
Instead, and this is for money OUTSIDE a retirement account, you could purchase a municipal bond fund offered by Vanguard or Fidelity. (Your regular broker will talk you out of this, so he can make commissions, so do it yourself!!)
But paying too much money becasue you earned too much money is a tough complaint. I’d stick with T-bills! https://www.terrysavage.com/t-bills-beat-cds-2/
And remember, you don’t pay state income taxes on T-bill interest.
