Quote:
Originally posted by Warf Rat
One year is a very short time to put your money anywhere. You need to think about if you will really need the money.
Both CD's and money market accounts create taxable dividends. Now I now that a few thousand dollars at next to no interest won't cause a big tax problem, but if you factor in taxes when thinking of return, CD's and money markets don't keep pace with inflation. You can always buy a municiple bond with one year left on it. You won't make much money, but it will be safe, and triple taxe free. That means no federal state or local taxes. If you can extend you time frame, there is a lot more that you can do.
Good Luck !!!!!!!!!1
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Check your state - some states/localaties won't tax interest only if its an in-state/local bond. Others will.