Keyword: Tax Efficiency
Tax Equivalent Calculator / The IRS Defense
A high-yield CD isn't what it advertises if you lose 37% of it to taxes. Compare Taxable vs. Tax-Free investments to find your true "Alpha."
37%
%
VS
%
$
The Magic Number
4.76%
A taxable investment must earn 4.76% just to match the 3% tax-free yield.
Taxable (CD/HYSA)
3.8%2.39%
Real Yield (After 37% Tax)
Tax-Free (Muni)
3.00%
100% KEEPER
Winner: Tax-Free Municipal Bond
You save $606 per year in taxes by choosing the Muni.