4 ms·
Yes, these are becoming more popular. Unfortunately, there is an annual purchase limit that is pretty low ($10K per person plus maybe an extra $5K if you can u
by PopAlongKid 5y ago
Yes, these are becoming more popular. Unfortunately, there is an annual purchase limit that is pretty low ($10K per person plus maybe an extra $5K if you can use a large income tax refund).
There was a time not that many years ago (15?) where I was actually earning higher interest in a bank CD than I was paying on my mortgage. I was also able to get short term cash advance at low introductory rate on a credit card, like $20K, and invest it short term at a higher rate. Good times.
- votepaunchy 5y agoInterest is taxed as income. Debt does not cancel out income unless paid on a mortgage when itemizing deductions.
- deleted 5y ago[deleted]
- PopAlongKid 5y agoYes, there is before-tax yield and after-tax yield. Tax rates are at historic lows right now and unlikely to stay that way long term (current rate cuts expire after 2025). Since tax applies to all kinds of income, I'm not sure why it should be a big factor in this discussion any more than it is in discussions of crypto, tech salaries, etc.