Everytime I ask a question on this forum I get smarter thanks for this great community.
It is tax time again, I'm dreading what I will owe. I'm curious if there are any tools or calculators, which can take different senarios and run the numbers based on existing data.
For example; Take $1M sitting in a Vanguard settlement fund, it is taxed at both state and fed level, however, with almost zero risk. I recently got wind of VUSXX, it is mostly state (CA) tax free, but still federally taxed with similar if not slightly better returns than the high yield VMFXX settlement fund.
I see there is other options like VCADX and VCITX, which are both Fed and State tax exempt mostly (...at least 80% of the fund’s assets will be invested in securities whose income is exempt from federal and California state taxes) These have much higher risk, and returns are 1%> less than VMFXX/VUSXX.
I'm looking for a tool or calculator which can take an initial input like $1M for example, using historical known data from the prior year, to calculate what the growth is for each account, figure out the tax benefit which makes the most sense. Sure VCADX and VCITX has a lower yield, but that could very well result in better returns due to lack of taxes.
I'm sure there is something out there and someone has already figured it out, any help is appreciate to make me smarter and more informed for FY25
Cheers
It is tax time again, I'm dreading what I will owe. I'm curious if there are any tools or calculators, which can take different senarios and run the numbers based on existing data.
For example; Take $1M sitting in a Vanguard settlement fund, it is taxed at both state and fed level, however, with almost zero risk. I recently got wind of VUSXX, it is mostly state (CA) tax free, but still federally taxed with similar if not slightly better returns than the high yield VMFXX settlement fund.
I see there is other options like VCADX and VCITX, which are both Fed and State tax exempt mostly (...at least 80% of the fund’s assets will be invested in securities whose income is exempt from federal and California state taxes) These have much higher risk, and returns are 1%> less than VMFXX/VUSXX.
I'm looking for a tool or calculator which can take an initial input like $1M for example, using historical known data from the prior year, to calculate what the growth is for each account, figure out the tax benefit which makes the most sense. Sure VCADX and VCITX has a lower yield, but that could very well result in better returns due to lack of taxes.
I'm sure there is something out there and someone has already figured it out, any help is appreciate to make me smarter and more informed for FY25
Cheers
Statistics: Posted by carbonfiber248 — Thu Jan 30, 2025 7:26 pm — Replies 0 — Views 58