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Advantages of Investing in Municipal Bonds
 
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This video discusses the advantages of investing in municipal bonds: namely, the historically lower risk of default (relative to corporate bonds) and tax-exempt nature of most municipal bonds. The video provides an example to show how the after-tax return of a municipal bond can be higher than a corporate bond that has a higher pretax yield. The video also demonstrates why municipal bonds are more attractive to high-income investors by showing that the tax-equivalent yield of a municipal bond increases as a person's tax rate increases. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 6923 Edspira
Tax Free Municipal Bonds | BeatTheBush
 
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Tax-free municipal bonds is a useful tool in creating more tax free income. Buying this very special type of asset class allows the dividends you get to be tax free. If you are in a high tax bracket, then these types of bonds is ideal as compared to earning dividends on the free stock market. Support more videos like this along with getting a bunch of perks here: http://www.patreon.com/BeatTheBush Get a free audiobook and 30-day trial. Even if you cancel, you still keep the book and you still support my channel for signing up. Support my channel by signing up to help me make more videos like this: http://www.audibletrial.com/BeatTheBush ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Credit Card for Starters Who Should NEVER Get a Credit Card: https://youtu.be/aNYZkMgTyb0 Only Use Credit or Only Use Debit: https://youtu.be/J0ZRgBIG39Q Credit Card Basics How Credit Card Calculates Interest: https://youtu.be/0Z2nWQdqa2A How Credit Card Grace Periods Work: https://youtu.be/8WuH3-PsjCA Difference Between Credit Card Inactivity and 0% Utilization: https://youtu.be/rtfJMZf_IrM Credit Card Statement Closing Date vs. Due Date: https://youtu.be/3-knvT7JbTk Does Canceling Credit Cards Affect Credit Score: https://youtu.be/jYGZukw5i-Q Can You Afford a No Limit Credit Card: https://youtu.be/sdAh7hzgJoU Credit Card Balance Transfer Hack: https://youtu.be/F2Foqg2ZTEw Credit Score Less Than 700 Maximize Credit Score while in College: https://youtu.be/pxGECoQoLLA Build Credit Fast with a $500 Credit Limit: https://youtu.be/attQKzngqoE How to Pay off Credit Card Debt: https://youtu.be/XY8YSPapnF8 How to Build Credit with Bad Credit or No Credit [w/ Self Lender]: https://youtu.be/RNXutBGAnlM How to Boost Your Credit Score Within 30 Days: https://youtu.be/LyBjciz4-zg Credit Score More Than 700 How to Increase Credit Score from 700: https://youtu.be/MCFKNBcyAWs 740+ is Not Just For Show: https://youtu.be/1fGcpxurzgU My Credit Score: 848, How to get it Part 1: https://youtu.be/dEZLZQXRBjQ My Credit Score: 848, How to get it Part 2: https://youtu.be/Y6-SB35C7Pc My Credit Score: 848 - Credit Card Hacks and How I got it: https://youtu.be/8Xz3hi3VWfM Advanced Credit Card Tricks How to get a Business Credit Card: https://youtu.be/S3srld5_l5Y Keep 16 Credit Cards Active: https://youtu.be/yAzkEK8Y6E8 Rejected for a New Credit Card with 826 Credit Score: https://youtu.be/66O505Oj5e4 Make Credit Cards Pay You Instead: https://youtu.be/wKMJdX1fQJA Credit Card Low Balance Cancellation $2 per mont [Still Works]: https://youtu.be/2DJjfvcMCcg Cash Back Are Credit Card Points Taxable?: https://youtu.be/Tw90h8I5JNk How to Churn Credit Cards: https://youtu.be/uw__fl38Dk4 Best Cash Back Credit Cards for 2017: https://youtu.be/e_uJweUsiDk 5% Cash Back on Everything: https://youtu.be/q9g_rySm_tI Always get 11% Off Amazon Gift Cards and Amazon Hacks: https://youtu.be/vbv6Rj2uUr4 Max Rewards: What's in My Wallet: https://youtu.be/cmJDFcbjFho How I Make 200 Dollars in 10 Minute [Hint: Credit Card Bonus]: https://youtu.be/pegq4G7ZhTI When Your Best Cash Back Card Gets Cancelled: https://youtu.be/pe7OuqxGi9M Amex Blue Cash Preferred vs. Everyday Effective Cash Back on Groceries: https://youtu.be/3ezD_QwS5e0 Double Dip Groceries Cash Back with Safeway Just for U: https://youtu.be/7kBl0W_L29U Milk the Barclays Cashforward Card for the MOST Cash Back: https://youtu.be/qf2gvrk6Evo This Channel: BeatTheBush I've obtained a high credit score of 848 out of 850 and I am glad to share the knowledge for everyone. Since 3 years ago, I've started making numerous videos that helped people increase their credit score that are free and accessible to all. Please enjoy my channel. Other Channels: BeatTheBush DIY: https://www.youtube.com/BeatTheBushDIY
Views: 9825 BeatTheBush
Municipal bonds
 
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Municipal bonds Municipal bonds are good for high income people Although investing in foreign bonds isn't a great idea for anyone, investing in municipal bonds may be a good idea for some people. If you have a fairly high income, you should take a look into investing into municipal bonds. Almost all municipal bonds are exempt from federal income tax, and most municipal bonds issued in your state also are exempt from state income taxes. However, only the interest income is exempt from taxation. If you sell a municipal bond, or bond fund, at a gain, you'll have to pay capital gains taxes. If you're in the 28 percent marginal tax bracket, municipal bonds are probably worth a look. If you're in the 31 percent marginal tax bracket, municipal bonds are certainly worth investigating. However, since municipal bonds are exempt from federal income tax, these bonds will offer a yield that is lower than the more creditworthy US Treasury bonds. To determine if investing in municipal bonds is right for you, you need to compare the after-tax yields of munis with taxable bonds of comparable credit quality. How to tell if you should invest in municipal bonds Suppose blue chip corporate bonds are yielding 10 percent, and municipal bonds yield only 8 percent. If you're in the 15 percent marginal tax bracket, the corporate bonds will provide a higher after-tax yield. However, if you're in the 28 percent or higher bracket, the municipal bonds provide a higher after-tax return. And remember that municipal bond funds come in all different maturities including money market funds. Never put municipal bonds in a retirement account Notice that you should never invest in municipal bonds inside of a retirement account. Retirement accounts already provide tax sheltering, so go for the higher yield provided by something like a corporate bond instead of the lower municipal yield. Also, if you're investing in municipal bonds, keep an eye on tax reform legislation. Tax reform packages offered by both Republicans and Democrats would end the tax exempt status for municipal bonds. If these tax reform packages became law, municipal bond prices will drop. Don't invest in most double exempt muni bond funds Finally, should you invest in a so-called double-exempt municipal bond fund? The answer is usually no. These funds invest in municipal bonds issued by a single state. For example, California investors might want to invest in a California double-exempt fund that invests only in California municipal bonds. This way, the interest income earned by the California investor is exempt from federal income tax and California state income tax. This makes the after-tax yield even better for a California investor. Almost every state has double-exempt bond funds. Even states that have no state income tax for some reason have double-exempt bond funds. However, most of these funds should be avoided. The problem with most of these funds is that their fees are too high. A typical double-exempt bond fund charges a sales load of 5 percent and has an expense ratio of well over 1 percent. However, if you live in a big state with high tax rates like California or New York, you probably can find a bond fund that is both double-exempt for your state and has low costs. The Vanguard mutual fund family is usually the place to look for these kind of funds. Insured municipal bonds There are several levels of credit risk in municipal bonds. Conservative investors can invest in insured municipals where an insurance company will assume the local government's obligations if the local government goes bankrupt. This insurance comes at a price, generally in the form of reduced yield. General obligation bonds Uninsured general obligation municipal bonds aren't as safe as insured municipals, but they are generally good credit risks. General obligation bonds are backed by the local government's full taxing authority. With GO bonds, the local government has the obligation to raise taxes to meet the debt payments. Revenue bonds Revenue bonds are another form of municipal bond. In this case the municipality doesn't guarantee that the local government will be liable for the debt. Revenue bonds typically are issued to pay for new sewers, stadiums or airports. The water department or stadium collects usage fees, and these fees are used to pay off the debt. If the usage fees aren't sufficient to pay off the debt's obligations, the government isn't on the hook to make up the difference. Revenue bonds for essential services like sewage are probably safer investments than bonds used to finance things like stadiums or convention centers. Copyright 1997 by David Luhman
Views: 1475 MoneyHop.com
Municipal bonds and your portfolio
 
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Taxes, quality, risk: There are many factors to weigh when building your portfolio. Vanguard fixed income experts Daniel Wallick and Chris Alwine describe the important role municipal bonds can play in a diverse investment strategy. All investing is subject to risk, including the possible loss of the money you invest. Credit-quality ratings are obtained from Standard & Poor's and are measured on a scale that generally ranges from AAA (highest) to D (lowest). *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 5562 Vanguard
The 3 Main Types of Municipal Bonds
 
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This video discusses the 3 main types of municipal bonds: general obligation bonds, revenue bonds, and prerefunded bonds. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 7497 Edspira
68: Municipal Bonds, How Insiders Scale Their Tax Free Income
 
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Michael Foster, the ‘CEF Professor’ from Contrarian Outlook, joins us for another episode to explain how to use municipal bonds to scale your tax-free income. During this episode, you’ll find out how to buy municipal bonds, determine if you should buy an individual muni bond, and understand the risk levels of the entire process. You’ll learn how a municipal CEF operates, what tools to use, and how interest rates impact closed end funds. Listen to the end to hear Michael’s top three muni funds and what Sam and Johnny Invest into themselves. Full Show Notes - http://investlikeaboss.com/ilab-68-municipal-bonds-insiders-scale-tax-free-income/ Links: Contrarianoutlook.com - https://contrarianoutlook.com/ The CEF Newsletter - https://contrarianoutlook.com/secure-fast-gains-cefs/WEB1 Where are we: Sam/Michael – Bangkok Johnny – Ukraine Recommended: Link to the newsletter: CEF Insider - https://contrarianoutlook.com/secure-fast-gains-cefs/NR-ILAB0817CEFI 2 Recent Articles on Municipal Bonds: The Shockingly Common Mistake That’s Costing You Thousands - https://contrarianoutlook.com/the-shockingly-common-mistake-thats-costing-you-thousands/ These 6%+ Yielders Are a Screaming Bargain - https://contrarianoutlook.com/these-6-yielders-are-a-screaming-bargain/ The muni funds recommendations discussed: Neuberger Berman New York Intermediate Municipal Fund (NBO) Nuveen New Jersey Quality Municipal Income Fund (NXJ) Pioneer Municipal High Income Trust (MHI) CEFconnect.com - https://www.cefconnect.com/ Discussed: ILAB 63 – Talking CEFs for 9.9%+ Yield with ‘CEF Professor’ Michael Foster - http://investlikeaboss.com/ilab-63-talking-cefs-9-9-yield-cef-professor-michael-foster/ Try FreshBooks Free - https://freshbooks.com/invest Books: Start Here – Recommended Reading - http://investlikeaboss.com/start-here/ Time Stamps: 06:09 – Are muni bonds boring? 07:27 – Why others invest in muni bonds? 09:01 – Tax considerations 10:02 – Three ways to buy municipal bonds 10:40 – Should you buy an individual muni bond? 13:00 – How does a municipal CEF operate? 15:25 – Average cap size 17:10 – Close end funds and rising interest rates 23:03 – Market trends and sell off 25:15 – Tools, software, and historical returns 26:59 – What is the risk level? 27:06 – Default rates 29:29 – California, New Jersey, Illinois 34:46 – Should you worry about fees? 38:55 – Recommended muni funds 48:42 – Investing in muni bonds 57:36 – Wealthfront investments If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! - http://investlikeaboss.com/bonus/ Copyright 2017. All rights reserved. Read our disclaimer here.
Views: 1433 Invest Like a Boss
Disadvantages of Investing in Municipal Bonds
 
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This video discusses several disadvantages of investing in municipal bonds. Municipal bonds typically are less liquid than U.S. Treasury securities or corporate bonds, which means they may be harder to sell on the secondary market or come at a significant markup or dealer spread when being purchased. In additon, municipal bonds are frequently callable, which means investors could be subject to reinvestment risk if interest rates fall and the issuer decides to call the bonds (leaving the investor to reinvest the proceeds at the lower rate of interest). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 5084 Edspira
Bond investing in challenging times: Bond funds vs. individual bonds
 
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In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss bond funds and individual bond portfolios. Notes: • All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. • Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. • Diversification does not protect against a loss in a declining market or ensure a profit. • Past performance is not a guarantee of future results. • The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. •Vanguard Marketing Corporation, Distributor.
Views: 6257 Vanguard
How to Reduce Taxes Under New Tax Law (2018) Interest Income
 
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Interest and dividend income are other areas of the tax code that punishes the ignorant. You have income on lines 8a, 8b, 9a and 9b? Why? Is there a strategic reason for earning this income in order to pay tax? If so, that's fine. Maybe you need the cash to help pay the bills, pay tuition, take a vacation, etc. However if you're receiving this income because of how your investments are designed without any strategic intent, I suggest you consider a different plan of action Let's start by looking at what types of income you have. If you have interest income, from bonds and/or CDs, this income is taxed at ordinary income rates. Worse yet, there is NOTHING you can do about it other than paying the tax on it...as ordinary income. Consider moving ANY holding you have that yields ordinary income(OI), into your Traditional IRA in order to defer those OI taxes as long as you possibly can. Remember your IRA is taxed as Ordinary Income anyway. So, having an IRA taxed at those rates PLUS having investment income taxed at the same means your paying too much in tax. If you have municipal bond income, i.e., 'tax exempt interest' consider scrapping those and instead moving into corporate and/or government bonds inside your IRA. Because municipals are tax free they offer a much lower interest rate than corporate and government bonds. So, for simplicity, say a municipal bonds yields 2.5% a corporate bond will pay more because it's income is taxed. A corporate bond with similar maturity date may pay 4%. This means it takes $320,000 in assets to yield $8,000 in income for the municipal bond but only $227,272 for the corporate bond AFTER taxes for someone in the 12% bracket! That is a significant difference in the allocation amount to corporate bonds over tax free bonds to receive the same after tax income. We don't municipal bonds, unless we're in the higher tax brackets, those above 22%. We don't want ANY bonds in our taxable account either. We want bonds in our Traditional IRA. Secondly, we want dividend paying stocks, the investments that give us income on lines 9a and 9b, in our ROTH IRA. DIvidends we don't need only cause higher taxes. Avoid that. Move your income-oriented stocks to your Roth. Lastly, we want your most aggressive holdings, ideally the ones with little to no dividends or capital gains in your taxable accounts. The unrealized appreciation on these investments cause you NO tax. Because these holdings are aggressive they should pay no dividends whatsoever. Lastly when it does come time to sell a position in order to generate cash, you can work the tax code to do it in the most tax-favored way possible. You can't do with other income you receive from your investments. Finally, at death, the growth of these aggressive accounts transfer TAX FREE to your heirs because of the step up basis rules. IRA accounts don't have that benefit. Roth IRA accounts don't have a step up in basis but they are tax free anyway, which is just as good. At the end of the day, it's up to YOU to understand the tax code to take advantage of it to your benefit. If your advisor isn't helping you with this, well, hate to sound brutal but seek a new advisor! ================================= If you like what you see, a thumbs up helps A LOT. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1 GET MY BOOK: Strategic Money Planning: 8 Easy Ways To Put Your House In Order It's FREE if you're a Kindle Unlimited Subscriber! https://amzn.to/2wKGi50 GET ALL MY LATEST BLOGPOSTS: http://heritagewealthplanning.com/blog/ PODCAST: https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2 LET'S SOCIALIZE! Facebook: http://Facebook.com/heritagewealthplanning Linkedin: https://www.linkedin.com/in/joshscandlen/ Quora: https://www.quora.com/profile/Josh-Scandlen Google +: https://plus.google.com/u/1/108893802372783791910
Taxability of Municipal Bonds
 
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Although municipal bonds are generally tax-exempt, there are situations in which municipal bonds will be subject to federal and/or state/local taxes in the U.S. This video provides several such examples, such as the taxability of nonessential purpose municipal bonds at the federal level and the taxability of out-of-state municipal bonds at the state/local level. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 538 Edspira
Taxable Corporate Bonds vs Municipal Bonds (Tax Exempt/Non-taxable) After Tax/Equivalent Formula
 
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In this tutorial/lesson I teach you how to compare taxable bonds such as corporate bonds with non-taxable or tax exempt bonds such as municipal bonds. Investors should always invest in the bond that provides the highest after tax return whether it is a corporate bond vs a municipal bond, corporate bond vs tax exempt bond, taxable bond vs tax free bond, taxable bond vs non taxable bond etc.. I show you how to do this by teaching you the after tax rate of return formula, the equivalent taxable return formula, and the cut-off tax bracket formula.
Views: 4273 Subjectmoney
Tax policy and the municipal market – Muni Minute Q1 2017
 
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BMO Global Asset Management’s Muni Minute with Rob Wimmel, Portfolio Manager and Head of Municipal Fixed Income, covers the dramatic turnaround in the tax-free bond market since the fourth quarter of 2016. Despite a Federal Reserve rate hike and continued uncertainty out of Washington DC, municipal bond funds saw positive flows. Rob also provides a history lesson on the correlation between income tax rates and the relative value of municipal bonds.
Bond investing in challenging times: What you should know about municipal bonds
 
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In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of from Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss what you should know about municipal bonds. Notes: •All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. •Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. •Diversification does not protect against a loss in a declining market or ensure a profit. •Past performance is not a guarantee of future results. •The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. •Vanguard Marketing Corporation, Distributor.
Views: 4239 Vanguard
Individual bonds vs. bond funds
 
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Which is a better investment? There are pros and cons to each, but Vanguard bond experts Daniel Wallick and Chris Alwine emphasize that a municipal bond fund provides diversification and can cushion against risk. All investing is subject to risk, including the possible loss of the money you invest. Credit-quality ratings are obtained from Standard & Poor's and are measured on a scale that generally ranges from AAA (highest) to D (lowest). *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 10888 Vanguard
Municipal bond basics
 
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What's a municipal bond and how does it work? Vanguard investment expert Daniel Wallick provides a primer for muni bonds, including how they're issued and why they can be an advantage for investors. All investing is subject to risk, including the possible loss of the money you invest. *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 4916 Vanguard
How is Your Retirement Income Taxed?
 
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Not all types of retirement income are taxed the same. In this short clip, find out how pensions, IRAs, 401(k)s, Social Security, capital gains, Roth IRAs and municipal interest are taxed. Big Al explains why Roth IRAs and municipal interest are the best options (hint: they’re tax-free). Transcription: "Here's another risk - income taxes. There's a lot of concern that taxes may become higher in the future and it's important to know how retirement income is taxed. If you look at pensions, IRAs and 401(k)s, they are taxed at ordinary income rates. Those are the highest of tax rates. Social Security is also taxed at ordinary income rates although there is a component of that that is tax-free, about 15% all the way up to 100% tax-free depending upon your income level. Look at this - capital gains, qualified dividends - those get special capital gains treatment which is usually about 15% tax; for some of you there is no tax. The absolute best one is Roth conversions and municipal bonds because those are tax-free, so if we can get some more money in Roth IRAs, Joe, we'd be a lot better off." If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” Channels & show times: yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Bond investing in challenging times: Bonds and your portfolio
 
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In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss the role of bonds in your portfolio. Notes: • All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. • Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. • Diversification does not protect against a loss in a declining market or ensure a profit. • Past performance is not a guarantee of future results. • The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. • Vanguard Marketing Corporation, Distributor.
Views: 5856 Vanguard
YOUR 401(k) #13 - Treasury Bonds, TIPS, & Munis
 
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In this video, we cover fixed income/bond funds that invest in government bonds, like Treasuries. We talk about T-Bills, T-Notes, and T-Bonds, as well as Treasury Inflation-Protected Securities (aka TIPS) and Municipal Bonds (aka Munis). What are you waiting for? Click here for exclusive access: www.reisupllc.com/your401k Please subscribe if you find these videos helpful! © 2016 ReisUP LLC Website: http://www.reisupllc.com/your401k Instagram: http://instagram.com/reisupllc Facebook: https://www.facebook.com/reisupllc/ Disclaimer: The content presented here is for educational purposes only and should not be construed as financial advice or recommendations. The information presented is believed to be up-to-date and factual, but ReisUP LLC cannot guarantee its accuracy and it should not be considered a complete analysis of the topics discussed. All expressions of opinion reflect the judgment of the author as of the publication date and are subject to change. The information contained herein does not contain personalized investment advice, nor should it be construed as legal or tax advice. A professional financial advisor, attorney, and/or tax professional should be consulted regarding your specific financial, legal, and/or tax situation. The information presented here is also not an offer to buy or sell securities, nor a solicitation of any offer to buy or sell the securities mentioned herein.
Views: 1186 ReisUP
Calculating the Tax Equivalent Yield
 
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This video demonstrates how to calculate the tax-equivalent yield of a tax-exempt investment. A comprehensive example is presented that computes the tax-equivalent yield of a tax-exempt municipal bond. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 3850 Edspira
Permanent Differences between Book and Tax Income
 
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This video highlights several permanent differences between book income and taxable income. For example, life insurance proceeds and interest on municipal bonds are never subject to federal taxation, yet they are included in book income for purposes of financial reporting. Conversely, life insurance premiums and fines for breaking the law are never tax deductible but are deducted when computing book income. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.
Views: 5410 Edspira
What is MUNICIPAL BOND ARBITRAGE? What does MUNICIPAL BOND ARBITRAGE mean?
 
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What is MUNICIPAL BOND ARBITRAGE? What does MUNICIPAL BOND ARBITRAGE mean? MUNICIPAL BOND ARBITRAGE meaning - MUNICIPAL BOND ARBITRAGE definition - MUNICIPAL BOND ARBITRAGE explanation. SUBSCRIBE to our Google Earth flights channel - http://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ?sub_confirmation=1 Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Municipal bond arbitrage, also called municipal bond relative value arbitrage, municipal arbitrage, or just muni arb, generally consists of building a leveraged portfolio of high-quality, tax-exempt municipal bonds and simultaneously hedging the duration risk in that municipal bond portfolio by shorting the equivalent taxable corporate bonds. These corporate equivalents are typically interest rate swaps referencing Libor or BMA (short for Bond Market Association). Muni arb is a relative value strategy that seizes upon an inefficiency that is related to government tax policy; interest on municipal bonds is exempt from federal income tax. Because the source of this arbitrage is artificially imposed by government regulation, it has persisted (i.e., it has not been "arbed away") for decades. The arbitrage manifests itself in the form of a relatively cheap longer maturity municipal bond, which is a municipal bond that yields significantly more than 65% of a corresponding taxable corporate bond. The steeper slope of the municipal yield curve allows participants to collect more after-tax income from the municipal bond portfolio than is spent on the interest rate swap; the carry is greater than the hedge expense. Positive, tax-free carry can reach into the double digits. The bet in municipal bond arbitrage is that, over a longer period of time, two similar instruments--municipal bonds and interest rate swaps--will correlate with each other; they are both very high quality credits, have the same maturity and are denominated in U.S. dollars. Credit risk and duration risk are largely eliminated in this strategy. However, basis risk arises from use of an imperfect hedge, which results in significant, but range-bound principal volatility. The end goal is to limit this principal volatility, eliminating its relevance over time as the high, consistent, tax-free cash flow accumulates.
Views: 30 The Audiopedia
Are Dividends From Municipal Bonds Taxable?
 
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This is the does tax exemption only apply to dividend distributions? Yes capital gains are taxable and they come in two ways. 2015 closed end fund tax guide blackrock. The interest income earned from most municipal bonds is exempt all federal taxes regardless of your tax bracket 24 jun 2015 for instance, a bond issued by municipality in new york will be state. Treasury interest, fully taxable dividends that qualify for the 17 apr 2015 this also includes interest on federally bonds (known as build state and local government obligations are municipal even though paid a bond is tax exempt, holder can income sale of such bond, just in case. 20 aug 2011 the key benefit of municipal bonds tax free interest. They may also be 23 mar 2015 given that your magi will include income from other sources, such as dividend and interest taxable bonds, avoiding 22 oct 2014 comes in different tax flavors municipal bond interest, u. Tax savvy tax exempt funds personal investors vanguard. Dor individual income tax state and municipal bond interest. While exempt interest dividends are not subject to federal income tax, they may still be state tax or the alternative minimum (amt) 30 nov 2016 every year, bondholders receive their annual 1099 int forms and dutifully report municipal bonds generally appropriate for high investors who seeking reduce taxable investment 17 jan 2006 from a bond fund that is invested in pennsylvania other states portion comes etf distributions qualified. State specific taxation of municipal bond interest vanguard tax exempt dividends by state for 2016 isharesamerican funds. Dividend investopedia the key benefit of municipal bonds tax free interest municipalbonds url? Q webcache. Taxes on bonds and bond funds fidelity. Googleusercontent search. The key benefit of municipal bonds tax free interest are exempt from state taxes? Taxation rules for bond investors investopedia. Blackrock municipal bond investment trust (bie) blackrock enhanced equity dividend (bdj) taxable (bbn)4 i am looking at tax exempt fund as a hassle free option. Municipal bond interest from bonds issued in exempt dividends are often associated with mutual funds that invest municipal. Taxability of interest and dividend income from state, local, taxation municipal bonds investing in. Dividend investopedia. First interest from certain municipal bonds are subject to utah income tax. The irs so interest payments from a muni bond etf are exempt at the federal level. Taxpayers with of ordinary income (such as dividends and interest), bonds bond funds are taxed in two ways based on the that's distributed interest generated by municipal is generally not subject to cost basis, amount your initial investment, any reinvested because from money market aren't federally taxable, these typically have lower yields than 20 jan 2014 tax laws for states indiana utah require dividend most other be included an box 1a financial advisor or brokerage firm 2016 irs form 1099 div2022 term muni. Unite
Views: 71 Cynthia Cynthia
Municipal Bonds: The Best Income Investment of 2014?
 
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The bond market has been a scary place to invest lately, with soaring rates causing losses in 2013. But in 2014, municipal bonds are starting to look appealing, especially to investors who can benefit from their unique tax advantages. In the following video, Dan Caplinger, The Motley Fool's director of investment planning, discusses municipal bonds. He notes that muni bonds are in the unusual situation of yielding more than comparable Treasuries, even though Treasury bonds are taxable while munis are free of federal income tax. Despite the perceived risk from high-profile bankruptcies like Detroit, many muni bonds are backed by insurance companies, with Assured Guaranty (NYSE: AGO) and Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) among companies insuring munis right now. Dan concludes by looking at some ways to get exposure to munis, including the iShares AMT-Free National Muni ETF (NYSEMKT: MUB) and similar state-specific investments. Investing made simple: The Motley Fool's essential guide to investing is now available to the public, free of cost, at http://bit.ly/1atRpHZ. This resource was designed to cover everything that new investors need to know to get started today. For your free copy, just click the link above. Visit us on the web at http://www.fool.com, home to the world's greatest investing community! ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool
Views: 2787 The Motley Fool
AMT, Capital Gains and Social Security Benefit Taxation with Munis - Right on the Money -
 
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This segment is taken from Right on the Money episode, "Money Topics That Need Addressing." Sub Headline: AMT, Capital Gains and Social Security Benefit Taxation with Munis Synopsis: Most taxpaying Americans are seeking tax relief. They cherish their deductions, exemptions and tax credits. Recently, a growing number of taxpayers have become aware of the critical tax difference between adjusted gross income and modified adjusted gross income. But few investor/taxpayers are aware of the tax correlation of investment earnings to each other, and nowhere is this more relevant than municipal bond income. Content: The American tax system is extremely integrated and stealthy in its correlation where hidden tax traps are positioned in the crevasses of the code to extract payment like highway robbery. If it were anybody else stealing from the American investor other than the government, it would be the CPA’s version of Grand Theft Auto. Imagine an investor’s portfolio with 40 percent in municipal bonds. You don’t have to be an economic psychologist to diagnose the municipal bond holder hates taxes. It’s not a mild dislike towards taxes. It’s not a small aversion about paying taxes. This is uncensored abhorrence toward taxes, and owning municipal bonds are a way of getting back at the man. But the taxman cometh and the utter revulsion has only just begun. There are stealth taxes that can ruin the day of a muni bond investor. First, there’s the alternative minimum tax (AMT) for municipal private activity bonds that meet a couple of conditions defined by the code. This needs to be on your radar when you perform due diligence on municipal bonds you’re considering. The AMT is a loathsome stealth tax if there ever was. It’s there to ensnare the unsuspecting who the government assumes is attempting to game the system and not pay one’s fair share of taxes. Second, there are capital gains. Although highly unlikely, it is possible for a municipal bond to appreciate beyond the original price you paid for it. You purchase the bond to enjoy its tax-exempt status, only to discover you may be subject to capital gains. Third, there’s taxation of Social Security benefits. All income from municipal bonds is included in the provisional income test for Social Security benefits. If the income is great enough, you may unwittingly be paying ordinary income tax triggered by a tax-exempt muni. Watch the interview with investment advisor representative Dan Stockemer addressing municipal bonds. As you can see, the muni bond tax checklist goes far beyond just confirming the income is not subject to federal, state and local municipalities. Now you have to be aware of the correlation of municipals to AMT, capital gains and Social Security benefits taxation. Syndicated financial columnist Steve Savant interviews investment advisor representative Dan Stockemer on money topics that need addressing. Right on the Money is a weekly one-hour financial talk show for consumers. (www.rightonthemoneyshow.com) https://youtu.be/sq6uOCdXmeI
Seeking Higher Yields in Tax-Exempt Bonds
 
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Investors have been buying tax-free municipal bonds at a record pace this year despite historically low yields. Jim Murphy, manager of the T. Rowe Price Tax-Free High Yield Fund, discusses his strategy for earning higher tax-exempt yields and the outlook for muni bond investing. Learn more at http://trowe.com/29BGS4a
Views: 1914 T. Rowe Price
The municipal bond landscape
 
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Vanguard municipal bond expert Chris Alwine reviews what's happened in the muni market over the past year and emphasizes the importance of keeping a long-term perspective. All investing is subject to risk, including the possible loss of the money you invest. Credit-quality ratings are obtained from Standard & Poor's and are measured on a scale that generally ranges from AAA (highest) to D (lowest). *For more information about Vanguard funds, visit vanguard.com or call 877-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.* Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. This webcast is for educational purposes only. We recommend that you consult a financial or tax advisor about your individual situation. © 2014 The Vanguard Group, Inc. All rights reserved.
Views: 228 Vanguard
Investing in municipal bonds
 
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Municipal bonds offer possible income tax exemptions for the fixed-income side of a diversified investment portfolio, Dave Sandstrom says in a Money Talk Video. Municipal Bond Checklist, from the Financial Industry Regulatory Authority http://www.finra.org/Investors/Protec... Dave Sandstrom is a vice president and investment advisor at Landaas & Company. http://www.landaas.com/about/talent/a... Money Talk Video by Peter May http://www.landaas.com/about/talent/s... More information and insight from Money Talk http://www.landaas.com/money-talk Money Talk Videos http://www.landaas.com/money-talk/mon... Landaas & Company Money Talk newsletter http://www.landaas.com/about/newsletter Follow Landaas & Company on Twitter http://www.Twitter.com/@_Money_Talk (initially posted Feb. 20, 2015)
Views: 166 Money Talk
Municipal Bonds or Muni Bond Funds: Investing 101 w/ Doug Flynn, CFP
 
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Doug Flynn, CFP, of Flynn Zito Capital Management, LLC on the many ways to Invest Municipal Bonds Ali: ...He started by telling us exactly what a municipal bond is. Doug: You're basically lending money to a municipality, to a government, a state, a city, to do particular projects, and for that they're going to pay you interest, and that interest is typically tax-free. Ali: Generally speaking though, if I buy an individual bond, I know what my return is going to be. There might be some chance I don't get paid, they're all rated, but if I get paid, I'm going to get a return, a percentage return. Doug: That's right, as a standard return, you might get interest every six months, which doesn't automatically reinvest, there's no way to do that: you're going to take that check and do something else with it. But absolutely, you know what you're going to get, and when you're going to get it. The problem now is if you buy a thirty year bond at a low point, and rates are higher in five years, you're going to be very angry that you locked in at a lower point when there will be higher bond rates coming in a few years. Ali: So that is the advantage of buying it in a fund, because a fund manager trades in and out of these things. Doug: That's right, and people dont realize that there is a benefit to trading, because when they do something called bond swaps, where there might be a way to do different things by buying one bond and selling another one that boosts the yield. But absolutely, you get bonds that get called on you, and the fund also has the benefit of a monthly dividend that can reinvest, so a lot of people like that. It's also a much better, easier, cheaper way to get involved. When you buy an individual municipal bond, people don't realize, unless you have $1,000,000, you're not an institutional investor, you're paying a price that can be 2 or 3 or 4% more, where a fund is going to pool that asset, or if you have that $1,000,000, you can get preferential pricing, but it's what the funds are going to hopefully bring to you. But you don't get a fixed return, and your fixed principal back to you. Ali: So doesn't that defeat the purpose? Because I buy a bond knowing what I'm getting over time. Doug: There are times you may want to buy an individual bond no matter what type of bond it is. I would say at a time when rates are extremely high, and possibly going down. That's when you want to lock in for as long as you can. But when rates are constantly going up, for the next couple of decades perhaps, and I don't know when, these are ways you can kind of roll into that, and not commit a whole bunch of money at a particular low point. Ali: Right, and these have all kinds of flavors. So you talked about buying a certain type of individual bond, that's not for everybody, you talked about mutual funds. There are even exchange traded funds for bonds. Now I know how ETFs typically work, it's a basket of stocks that you buy, it's got a ticker, you buy it like a stock. How do they work when it comes to municipal bonds? Doug: It's exactly the same way. Now an ETF is a mutual fund, it just happens to be one that also trades on the stock market. So you can find municipal bond funds that trade on the exchange throughout the day. You get into the movement of the market on a daily basis throughout the day, as opposed to only at the end of the day with a traditional mutual fund. But you can buy them in ETF format. Therefore they might be a little bit cheaper... Ali: Cheaper because there's a lower fee because you don't have to pay a manager... Doug: Correct, but you might not be able to reinvest the dividend off of that, so that's a little bit different. Ali: It worries me though, because you need a certain sophistication to understand getting in and out of bonds. Now do I give that up by going for an ETF versus one where I am paying for a manager who's a specialist one hopes. Doug: There is value in trading bonds if the manager you're choosing knows what they're doing, so if you take an individual municipal bond, you have one bond, you're subject to it, you buy an ETF that's a fixed basket that isn't necessarily actively traded, but maybe it's fifty bonds instead of one, but there is an active trading, but then you have a more common traditional fund, where the manager hopefully is trading and bringing something of value to the equation for you. So those are different risks depending on how you would like to do it. Ali: Now let me ask you one more thing. A unit investment trust, what is that? Doug: It's similar to an ETF, it's a basket of securities that many different firms put out there, but they have a maturity date. But all these things should be available to you, and you should research, or an adviser can help you out based on what your needs are, and that will be the best way to buy some municipal bonds if you need some additional, tax-free income.
Views: 6386 FlynnZito
Municipal Bonds and the Advantages of Tax Free Income
 
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Eric Frey with Nuveen discusses municipal bonds and the advantages of tax free income for WealthTrust Arizona clients.
Views: 417 WealthTrust Arizona
Municipal Kicker Bonds - Dean Myerow
 
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Dean Myerow of Las Olas Wealth Management breaks down the ins and outs of municipal kicker bonds. Dean Myerow is a municipal bond market asset manager and along with partner, Sean Vesey the team structures institutional and high net worth investor portfolios at Las Olas Wealth Management of NatAlliance Securities LLC. Las Olas Wealth Management - http://lasolaswealth.com Kickerbond.com - http://kickerbond.com Important Disclosures The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. All bonds and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. Municipals and tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security’s tax-exempt status (federal and in-state) is obtained from third-parties and Las Olas Wealth Management of Nat Alliance Securities LLC does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.
Views: 107 dean myerow
Income Planning May Save Taxes on Social Security Benefits - Right on the Money - Part 5 of 5
 
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This is part five of five taken from the full episode of Right on the Money featuring the Social security Series. Sub Headline Taxes on Social Security Benefits Correlate to All Forms of Income Synopsis No one can say for sure how many pages or words are in Internal Revenue Code, and it’s a hotly debated topic online. What’s not debatable is the U.S. tax code is the most convoluted government revenue system in the world. The complexities can be mind numbing, and it only gets worse when you have to compute taxation on Social Security benefits. Content The qualified retirement plan quandary propagates the theory that during your golden years, you’re in a lower tax bracket than your working years. There is a growing movement among economists tax brackets will remain equal or experience an increase due to government deficits. But even if your ordinary income tax bracket is lower when qualified plan income is distributed, it will be used to calculate whether your Social Security benefits are taxed as well. Some municipal bond income could be categorized as a tax-preference item under the Internal Revenue Code. This could trigger the alternative minimum tax and adversely cause Social Security benefits to be taxed. Few muni bondholders are aware their muni bond income can fall into these indirect tax traps, the very reason they purchased muni bonds or muni funds: to avoid paying taxes. The capital gains trap is another little-known indirect tax on Social Security benefits. Capital gain taxes are significantly less than ordinary income taxes and therefore preferred by taxpayers. However, while capital gains are taxed at a lower tax bracket, the full gain flows through the front page of the return and bulks up the AGI on the bottom of page one. This can force the taxpayer into a higher income tax bracket for the rest of the income, and AGI is used to determine how much Social Security income is taxable. It also affects a non-tax item: it’s used to determine Medicare premiums. Suddenly, these great tax breaks don’t look so good to retired people on a fixed income trying to live off their hard-earned nest egg. Syndicated financial columnist and talk show host Steve Savant interviews Tom Hegna, popular platform speaker; best selling author and retirement expert. Tom hosted the PBS Television Special "Don't Worry Retire Happy." The television special was designed after Tom's latest book, "Don't Worry Retire Happy." Tom's first book, "Playchecks and Paychecks" drew critical acclaim from financial advisers and insurance professionals. Right on the Money is a weekly one hour financial talk show for consumers. (www.rightonthemoneyshow.com) https://youtu.be/WcMhwC2D8QI
All About Tax Free Bonds
 
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Learn all about tax free bonds in this special video, which covers the following: What are tax free bonds? Benefits of investing in tax free bonds? How to invest in tax free bonds? And the tax-free returns received from tax-free bonds.
Views: 15639 Edelweiss Group
TAX TREATMENT OF BHAWISHYA NIRMAN BOND ZERO COUPON BOND WHETHER EXEMPT OR TAXABLE AS CAPITAL GAIN
 
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TAXABILITY/TAX TREATMENT OF BHAVISHYA NIRMAN BOND OR ZERO COUPON BONDS - WHETHER EXEMPT OR TAXABLE AS CAPITAL GAINS UNDER INCOME TAX ACT - FOR EDUCATIONAL PURPOSE ONLY
Views: 490 Amit Damani
How Do My Investments Affect My Taxes?
 
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Nate Ritchison, CFP® answers your question of the week by sharing how to do tax smart investing by learning how investments will affect your taxes. There are different types of accounts where you can hold your money and they are all taxed at different rates. Investors have the option to invest in tax-deferred, tax free and taxable accounts. It's important to be strategic with where you hold your money and which accounts you use to invest for more optimal tax savings. By investing tax-efficiently and employing strategies such as tax loss harvesting, you're able to save more in long term. Transcription: "Hi, I'm Nate Ritchison, Certified Financial Planner™ with Pure Financial Advisors, and this is Question of the Week. This week's question is: How do my investments affect my taxes?There're a couple things to consider. Number one is how you how you save the money. You can use certain accounts to give you tax advantages--things like a deductible 401(k) or an IRA will give you tax deductions, but be careful because you'll have to start paying taxes on those when you start withdrawing those funds. Other accounts like a Roth IRA don't give you the tax deduction but they give you tax-free growth. So you have to be aware of how those dollars going in to that account are taxed in order to figure out how you're going to pay tax down the road. Those are tax advantaged accounts. The other thing you have to consider is anything outside of those types of retirement accounts would be a regular investment, a taxable investment account. The two things you have to consider on those are the gains and the income that are produced. The gains are going to be taxed typically if you've held it for over a year, at capital gains rates, which are always lower than your ordinary income tax rates. If you've held it for less than a year, you'll be subject to that same ordinary income tax rate on those gains. The second thing is the income. The income on those investments are also going to be taxed. It depends if you have dividend income from stocks or if you have interest income from bonds. There are many different ways, but dividend income generally speaking is taxed the same rate as capital gains. Interest, however, can be either taxed at ordinary income tax rates or tax-free. An example of the ordinary income tax rate would be corporate bonds; you receive that income so you have to claim that on your tax return. However, with municipal bonds, you're going to be subject to no tax--you actually get a tax advantage and tax re-growth in income off that. Those are just some examples of ways that investments can affect your taxes. Again, my name is Nate Ritchison, with Pure Financial Advisors, and this has been Question of the Week." http://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
7 Ways to Create Tax-Free Income
 
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Joe and Al discuss seven ways to create tax-free income: investing in municipal bonds, selling your home, renting your home, moving to a tax-free state, using a 529 plan, HAS plan and doing a reverse mortgage. 0:08 “Did you know that California municipal bonds are 100% tax-free, meaning that the interest income that you earn from them (as long as you’re a California resident) won’t require you to pay taxes?” 0:20 “If you have a residence that you’ve lived in for at least two out of the last five years, if you’re single you get to exclude up to $250,000 of gain; if you’re married you get to exclude up to $500,000 of gain” 1:07 “You can move to a tax-free state, not federal tax-free but state tax-free. What are those tax-free states? Nevada, Washington, Texas, Florida, Wyoming, South Dakota, Tennessee, New Hampshire and Alaska” 1:44 “You can take money out of the equity of your home and create some tax-free income there as well” 1:49 “There are multiple ways to create tax-free income; it’s about putting all these things together to see what’s going to make sense for you. Map these things out and you’re going to make your money grow that much longer if you cut the middle man [Uncle Sam] out” Season 2 Episode 24 Aired 6/20/15 If you live in southern California and would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” Channels & show times: http://yourmoneyyourwealth.com http://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Tax Free Municipal Bonds (Tax Refund 2017)
 
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Check Out My Real Estate Tees: https://teespring.com/run-it-up-real-estate-shirt#pid=2&cid=2122&sid=front Here is what I did with my 2016 tax refund follow me @redarmystalin
Views: 1551 Millennial Thinktank
Introduction to Municipal Bonds
 
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This video introduces the viewer to municipal bonds. The video explains what municipal bonds are, distinguishes between the different types of municipal bonds (general obligation, revenue, prerefunded), and discusses common features of municipal bonds such as callability and tax-exemption. The video closes with an example that illustrates why tax-exempt municipal bonds are more attractive to investors in higher tax brackets. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 4286 Edspira
What are Municipal Bonds? | Fidelity
 
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Learn the details behind general obligation municipal bonds – what they are, why they are created, and how they work – with this illustrated video by Fidelity. To learn more about municipal bonds, please visit https://www.fidelity.com/fixedincome-bonds/individual-bonds/municipal-bonds. To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ----------------------------------------------------------------------------------------------- Many people purchase municipal bonds as part of their overall investing strategy, but there’s quite a story behind how they are created, how they work, who’s involved. The municipal bond process can be a complicated one, so we’ll try to simplify it for you. Our story begins by paying a visit to Anytown, USA. Anytown is a great place to live. There’s a thriving cultural scene, good schools, and a strong business environment. It’s no wonder that many families have moved here. But, with lots of families now living in Anytown, the schools are bursting at the seams. The mayor, town council, and school district leaders all agree that a brand new school is needed, in addition to expansions to some of the existing school buildings. But, at an estimated cost of $30,000,000, how will the town pay for it? The town leaders come up with a plan to raise these funds by issuing bonds. This means that Anytown will borrow money from investors with the expectation of paying them back, with interest, over time. The people who will actually use the school building in the future will also be the folks paying for it. Anytown will use property tax revenues to repay the investors, backed by the full faith and taxing authority of the town. This is called a “general obligation municipal bond.” But, things can’t move forward just yet. Voter approval of the proposal is required. So, a bond proposal is developed and put on the ballot, as part of an election. The votes are tallied and the proposal is passed. At this point in our story, some new characters enter the scene: the underwriter, the bond counsel, and in most cases, the financial advisor. The financial advisor helps Anytown make decisions regarding the bond issue and works with the underwriter to determine pricing and distribution to investors. The underwriter acts as a liaison between the town and potential investors when bringing the bond issue to market. An underwriter can be chosen in two ways: via competitive sale or negotiated sale. The leaders of Anytown decide to go the competitive route, and put the bond issue out to bid. This is where the bond counsel, Smith & Jones Law Firm, enters the picture. Smith & Jones prepares the bond documents, including the Official Statement, and since Anytown has chosen the competitive route, a Notice of Sale. The Official Statement contains all the information a prospective investor needs in order to invest in Anytown’s bond issue. The underwriter will review the Official Statement and decide whether to bid on the bond. The bond counsel also writes the legal opinion, which provides justification and law for the tax exempt status of the issue and ensures that the bonds are valid and binding obligations for Anytown. The firm does not comment on the investment merit of the bond issue. Now that the legal opinion is in place, the Notice of Sale can be completed and posted. ABC Investment Bank sees the ad and is interested in underwriting it, with the ultimate goal of buying the muni bond issue from Anytown, and reselling it to investors. Before submitting a bid, however, they would like to invite other investment banks to participate with them, so they decide to form a syndicate and act as the syndicate manager. Forming a syndicate will allow the bank to share the marketing and distribution duties, as well as some of the financial risk of underwriting the bond issue. Two banks, JKL and XYZ, agree to join ABC Syndicate and they submit a bid. Back at Anytown town hall, the bid is reviewed, along with several others up for consideration. After much deliberation, the bond issue is awarded to the syndicate formed by ABC Investment Bank because they turned in the lowest borrowing cost. The syndicate goes to work as the underwriter, reaching out to individual and institutional investors to determine their interest in purchasing the bonds [...] Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 608004.3.0
Views: 61844 Fidelity Investments
What are Municipal Bonds?
 
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Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Municipal Bonds” Municipal bonds are issued by a government, such as a state, county, district or municipality. Issuers often use the money to pay for public projects, like roads or construction projects, that would otherwise come directly out of taxpayers’ pockets. In most cases, the interest holders of municipal bonds receive is exempt from federal taxes, which is a huge appeal for investors. Maturities can range from the short term, usually one to three years, to a decade or longer. Municipal bonds called munis are debt obligations issued by government entities. When you buy a municipal bond, you are loaning money to the issuer in exchange for a set number of interest payments over a predetermined period. At the end of that period, the bond reaches its maturity date, and the full amount of your original investment is returned to you. While municipal bonds are available in both taxable and tax-exempt formats, the tax-exempt bonds tend to get the most attention because the income they generate is for most investors exempt from federal and, in many cases, state and local income taxes. By Barry Norman, Investors Trading Academy
Palabra del día: Municipal Bond
 
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Glosario Financiero: MUNICIPAL BOND In the United States, a Municipal Bond is a bond issued by a state, city or local government. In some cases, municipal bond income gets preferential tax treatment. En los Estados Unidos, un bono municipal es un bono emitido por un estado, ciudad o gobierno local. En algunos casos, los ingresos de bonos municipales reciben un tratamiento fiscal preferencial.
Protect Municipal Bonds
 
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NLC Executive Director Clarence Anthony calls on the federal government to not limit in any way the income tax exemption for municipal bonds. Take action today to protect the bonds cities rely on to finance infrastructure projects, create jobs and keep residents' taxes lower by visiting www.nlc.org/munibonds.
Municipal Bonds -- Buying Safe Bonds
 
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Municipal bonds are a great way to earn safe, tax-free income. But the key is finding bonds without risk of default or bankruptcy impairment.
Views: 1158 Creekside Partners
What Is Considered Tax Exempt Interest Income?
 
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Interest that may be exempt from federal income tax 1 2017 however, some interest you receive. The income derived from these sources is considered to have been learn more about interest and whether qualifies as taxable or tax exempt the experts at h&r block 23 mar 2017 taxed ordinary rates municipal bond reported on line 8b of form 1040 if answer this question not pre filled, enter total amount you in 2015. What is tax exempt income? Definition and meaning taxable interest incomeHow taxed reported on your return the balance. Tax exempt interest from state and municipal bonds are considered as tax income, exempted federal taxes. Interest income that is not subject to federal tax. Considered to be united states government obligations (12 uscs section 2288, 31 3124[a]). Property considered a necessity of life, often exempted from sales taxes in the united states for federal income tax, interest amount exempt has varied however, 'gift' an employer to employee is compensation, and bulletin git 5in general, dividends are taxable must be included on your new. Tax exempt interest income? Fafsa. Types of state and municipal bond interest income will not be tax exempt exemption refers to a monetary which reduces taxable. Jersey income tax represents a preference item (relating to exempt interest from certain your portion of the has been included on however, iowa state and municipal securities is should not be this line. Interest income and taxes fidelity investments. Academic scholarships, certain death benefits, and tax exempt interest. Tax topics topic 403 interest received internal revenue service. Uslegal, inc tax exempt interest dividends by state for 2016 isharestax federal income purposes exemption wikipediagit 5 obligations of new jersey. Tax exempt interest internal revenue service. How interest is taxed and reported on your tax return the balance. The response indicates the total amount of tax exempt interest income student's parents earned in 2015. Generally speaking, most interest is considered taxable at the time you receive it or can withdraw. Tax exempt interest income earned from subsidiary jurisdictions. Tax exempt interest investopedia. It is used in calculating the taxability of certain income items, such as definition tax exempt that not subject to federal, state, and or local taxes. What is tax exempt income? Definition and meaning taxable interest income. Googleusercontent search. If you filed irs form 1040 use line this is question 94d on the fafsa. You must include all taxable interest in your income on federal tax although exempt is not taxable, it be reported form 1040, line 8b. Tax exempt interest investopediawhat is tax interest? investing answers. 2015 closed end fund tax guide blackrockiowa department of revenue. Parents' tax exempt interest income fafsa. Tax exempt interest can be somewhat of a misnomer as it may still taxed at the state or local levels while dividends are not subject to federal income tax, they this is becau
Views: 138 Cynthia Cynthia
Should I Buy Municipal Bonds?
 
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Is it a good idea to buy municipal bonds in this economy? I want to invest in something safe but with a decent yield. Should I buy municipal bonds? You can get both taxable muni bonds and tax-exempt bonds. Tax exempt bonds are popular for people approaching retirement so that they don't have to pay income taxes on the returns. Tax-exempt sounds good. It improves the rate of return. You are taking a big risk on interest rates. If the interest rates skyrocket, you'll lose money on the bonds. That is true for any bonds. You're taking a risk that the city isn't going to go bankrupt like Detroit. That is a very rare event. Because many cities in the Rust Belt, California and Northeast borrowed heavily to pay for infrastructure and unions, there are hundreds of municipalities at risk of bankruptcy. Building roads is an investment. Bonds are like credit cards for cities. They built stadiums, convention centers and even theme parks, and in some cases, are paying off the bonds for buildings that no longer exist. That is bad, or sad. I can't decide. But you mitigate the risk by buying bond funds, instead of just individual bonds. Infrastructure projects like roads, bridges and schools build up a city's value. That will improve the tax base over time. Billion dollar schools don't teach better than cheaper ones, and cities using bonds to pay over-priced teachers and pensions could easily default. Sounds like you are dead set against muni bonds. You don't see bonds as an investment in your community? They spend billions on education and end up with lots of functionally illiterate kids. They spend billions on stadiums for losing teams and come up with numbers to make it sound good. If it builds the community - For as much as my property taxes went up to pay for the new stadium bonds, we all ought to get free lifetime tickets, not pay $10 for parking and $30 to walk in. You're right. One city may do stupid stuff with the money -- bond fund it is.
Views: 1764 Money Wise
How tax reform may affect muni bonds
 
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How will tax reform affect muni bonds? Senior Portfolio Manager RJ Gallo provides his take on tax reform and key issues for muni bonds in 2018. Views as of 12-13-2017. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 3702 FederatedInvestors
Expected tax reforms and muni bonds
 
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Portfolio Manager R.J. Gallo separates speculation from reality when it comes to how tax reform may affect municipal bonds. Views as of 2-9-2017. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 2028 FederatedInvestors
Why Muni Bonds are Always a Favorite During Tax Season
 
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Municipal bond prices have had a great run over the past year, but they still remain cheap compared to Treasury bonds, said Thomas Metzold, portfolio manager for the Eaton Vance National Municipal Income Fund. Metzold added that muni bonds also saw a nice bounce as a result of Federal Reserve Chair Janet Yellen's dovish stance last week. He said he is less sanguine about the high yield muni market because of some potential credit issues in the tobacco and charter school arenas. Metzold also said Illinois may not be the next Greece as a result of its pension crisis, yet Chicago may have trouble in the future meeting its obligations along with Puerto Rico. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Taxable income
 
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What is taxable income? Now we come to the part of Form 1040 where we start to put in numbers. For starters, you need to report your income. A lot of people take this part for granted. They just fill in their income, as reported on W-2s or 1099s, and then spend all their time worrying about deductions. This is probably a mistake. To try to reduce your income taxes, you should understand what income is taxable, and what is tax exempt. Almost all forms of income are taxable Unfortunately, according to the Internal Revenue Code, almost all forms of income are subject to tax, except for those items specifically exempted by the code. This means that almost all forms of income from wages, tips, interest, dividends, bartering, prizes, gambling and pensions are subject to tax. We'll go into more detail about what is taxable, but let's spend a moment talking about what is not taxable. What isn't taxable For starters, gifts that you received aren't taxable to you. You won't have to pay federal income tax on any gift that you receive, but if you receive more than $10,000 as a gift the donor may have to pay federal gift taxes. The IRS views inheritances as a form of a gift, so you won't have to pay any federal income taxes on anything you inherit. However, the estate of the donor may have to pay federal estate taxes if the estate was valued at over $600,000. If you bought your own disability insurance, any proceeds you receive from the policy are free from income tax. However, if your employer paid for the policy, disability insurance proceeds are taxable. Any life insurance proceeds you receive are also free from income tax, but life insurance is not exempt from estate taxes. Interest from most municipal bonds is exempt from federal income tax. Scholarships also are exempt from tax. And if you work, you can receive about $5,000 in tax-exempt employer-paid tuition for an undergraduate college degree. This exemption changes constantly, so be careful with this. But if you're working on an undergraduate degree, see if your employer can give you a hand here. There are also several fringe benefits that you, as an employee, can receive income tax free. Employer paid health insurance is not taxable Health insurance is by far the biggest tax-free benefit. Each year a company can give its employees thousands of dollars worth of health insurance. This is a deductible expense to the company, but doesn't show up as income to the worker. When the Clintons tried to nationalize our nation's health care system in 1993, they had to find ways to pay for it. One of the ways was to tax the health insurance benefits that workers currently receive tax-free. Now I don't have any problem with including health insurance in everyone's taxable income, but if they broaden the definition of taxable income but don't lower tax rates, you've given a tax increase to millions of Americans. Although employer-provided health insurance is the largest tax-free fringe benefit, there are others worth mentioning. Employer provided child care is not taxable Perhaps the best of the rest is the dependent care fringe benefit. If your employer offers this benefit, you can exclude up to $5,000 of payments which go to a care provider. This benefit is worth something. Assume that you have a child, and a local day care provider wants $2,000 per year to watch your child after school. If your federal and state taxes put you in the 33 percent bracket, you'd have to earn $3,000 in pre-tax dollars to pay the $2,000 fee. If, however, your employer offered a dependent care assistance plan, the employer would only have to reimburse you $2,000 to pay the $2,000 fee because a qualified reimbursement would be tax free. With fringe benefits, it's easy to see how both you and your employer can work out something that will benefit you both. There are other tax-exempt fringe benefits like $50,000 in term life insurance, employee discounts, and employee athletic centers. These all offer tax savings, but they also make the tax system more complicated than it needs to be. Welfare payments are tax free Finally, state provided welfare payments are tax exempt. Strangely enough, however, unemployment compensation is taxable. With this kind of set up, it's not hard to see that there's an incentive to not work. If you're currently on welfare, you receive a number of payments for housing, food, and free medical care. This is all tax free. However, if you start working, you lose over 7 percent of your pay to Social Security or FICA taxes from your first dollar of income. Further, you're subject to income taxes after about the first $7,000 dollars of income. W-2s But if you're a typical worker, most of your income will come in the form of wages or salary. This number is reported to the IRS on your W-2 form. Copyright 1996, David Luhman.
Views: 17895 TaxHop.com
General Obligation Bonds
 
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This video discusses general obligation bonds, aka "GO Bonds." General obligation bonds are a type of municipal bond that is backed by the full faith and credit of the issuer; namely, the issuer's power to tax. This video also highlights the various subtypes of general obligation bonds, included unlimited-tax and limited-tax general obligation bonds. The video also points out several provisions that affect the value of a general obligation bond, such as the first budget obligation, statutory liens, and tax caps. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 2236 Edspira

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