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Question about EXTREME early retirement
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Date: July 28th, 2012 7:24 PM |
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Date: July 28th, 2012 7:24 PM |
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Date: July 28th, 2012 7:25 PM |
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Date: July 28th, 2012 7:28 PM |
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Date: July 28th, 2012 7:28 PM |
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Date: July 28th, 2012 7:24 PM |
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Date: July 28th, 2012 7:25 PM |
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Date: July 28th, 2012 7:25 PM |
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Date: July 28th, 2012 7:31 PM 2. invest in tax-free municipal bonds 3. produce ~60-70k per year
NOTES: 1. as an individual investor, you will get RAPED by transaction costs, so you're not buying bonds to trade. you're buying to hold to maturity 2. there is NO fear of default if you invest in bonds backed by large municipalities and do even a little research 3. pay attention to call provisions and in-state tax status ("tax-free" munis are federally tax-exempt but not always in-state tax-exempt)
EDIT: above poasters are right, if you are out there chasing dividends, you'll get fucked when the dividend tax rate changes. it will be much harder for congress to fuck with the muni tax exemption, although they try periodically, and even if they did, the bonds you were already holding would skyrocket in value |
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Date: July 28th, 2012 7:32 PM |
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Date: July 28th, 2012 7:36 PM
one issue is the market is not as liquid as equities, so you pay through the ass to some sleaze broker for any bond you want to buy |
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Date: July 28th, 2012 7:38 PM |
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Date: July 28th, 2012 7:41 PM
EDIT: also you should find out what the tax rules are for premium and discount. i think there's some rule about how you can amortize the premium, but IDK |