DISQUS

Consumerism Commentary: ShareBuilder $50 Promotion Updated

  • Rabi · 4 years ago
    I may be misunderstanding something here, but I'm not sure you should be using your effective tax rate for this calculation. Rather, you should be looking at your marginal rate.

    If you keep your money in the taxable account instead of the tax-exempt account, you would pay your marginal tax rate on that extra income.
  • Flexo · 4 years ago
    If that's the case, it changes things. I am in the 25% tax bracket, so apparently the 3.3 percent becomes 2.475 and 3.5 becomes 2.625. In that respect, the tax-exempt fund is more competitive.
  • jim · 4 years ago
    I wanted to agree with Rabi and also add that you should project your earnings this year and see if you have any major changes (such as website revenue, side projects, etc) as that will affect your marginal tax rate (maybe not enough to change it, but one can hope right?)