Oct 11
20. Consider tax-exempt securities. Income from municipal bonds is free from federal taxes. Better still, invest in municipal bonds issued in your own state and you can save state and perhaps local taxes as well as federal taxes. Focus on after-tax yield when comparing the returns on different income investments. For example, if you are in the 31% bracket, a municipal bond paying 5% is equivalent to a taxable investment earning 7.25% (see “How to Boost your Savings”). Seniors may pocket ev
