Sentences with phrase «funds are in the higher tax bracket»

Municipal bond funds are exempt from paying federal taxes, and in some case even exempt from state taxes... Most investors that invest in mumi funds are in the higher tax bracket, so muni funds are a good choice, to avoid being taxed on the dividends.

Not exact matches

If you're already in the lowest tax bracket you may not even want to contribute to an RRSP, he says, since a large retirement portfolio could push you into a higher tax bracket when you retire and withdraw those funds.

The tax rates used by the fund in analyzing current and potential investments are based on the marginal rates for the highest tax bracket in Ontario, as advised by the auditors of the fund.

Muni funds are usually traded by people with in the higher tax bracket because these funds are except from federal taxes... Sometimes even escape state taxes as well.

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

A municipal bond fund might be one of the best investments if you're in a high tax bracket.

Investing in a high - quality municipal bond fund may help you keep more of what you earn if you are an investor in a higher federal tax bracket or a resident of a high - tax state.

If you're going to be in the highest tax bracket then it's a good idea to pay back the funds to your RRSP to avoid a $ 766 tax bill.

Even if you're in a high tax bracket, it's important not to just focus on taxes when you're selecting funds.

«Part of the premise of an RRSP,» Allen says, «is that you should contribute to it when you're in a higher tax bracket and pull funds out when you're in a lower tax bracket.

If you're in one of the highest tax brackets and investing outside of your retirement account, you may be able to reduce your tax exposure with a tax - exempt bond fund.

Investing in a high - quality municipal bond fund may help you keep more of what you earn if you are an investor in a higher federal tax bracket or a resident of a high - tax state.

Municipal bond funds are suitable primarily for taxpayers in the higher tax brackets.

If you are in the highest tax bracket and you have to invest in debt funds for less than 3 years, choose dividend reinvestment option.

Meanwhile, if your tax bracket in retirement is higher, you'll be happy you funded a Roth.

But if you're in one of the top federal income tax brackets and live in a state with high income taxes, you may come out ahead with a tax - free fund.

Arbitrage funds are tax - efficient ones if you are in high tax - bracket (if units are held for > 12 months).

If you're already in the lowest tax bracket you may not even want to contribute to an RRSP, he says, since a large retirement portfolio could push you into a higher tax bracket when you retire and withdraw those funds.

But for those who are in the higher tax brackets, it might make sense to look at debt mutual funds for your asset allocation.

Say, if I'm putting money in some index funds for 5 years, and in 5 years I'll probably be in a higher tax bracket than now.

If you have a spouse, partner or kids in a lower tax bracket than you, consider a prescribed rate loan strategy whereby the higher - income spouse or partner loans funds to the lower - income spouse or partner to invest at the record low prescribed rate, which is at one per cent until at least March 31.