What is the best tax free investment for $900,000.00 for two people who are retired and wanting to relocate to Vegas or Florida?
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Tax free is probably muni bonds. Or you could just invest in things that have higher rates of return, pay the taxes, and be better off.
There is no capital gains tax on equities in Switzerland for a start. check the SMI index or for small and mid caps check SPI index.
I dont know about how tax free it is, but there are loopholes in buying into precious metals and it is the hottest thing these days – it is shooting up like the tech stocks of the 90’s
Your best strategy is probably to invest in muni bonds to provide you with the retirement income that you need to supplement social security and any pension income that you have.
The rest should probably be split between bonds and a tax efficient mutual fund with low fees(index funds fit this criteria very well).
With this quanity of money, it is probably a good idea to consult a professional financial planner.
While Real Estate is a tax advantaged investment, this is very likely a bad time to invest in the two markets that you mention.
BTW even if you think preciouse metals will increase, they are tax-wise one of the worst investments. They are treated like ordinary income(which has the highest rates).
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IF you are asking this question on Yahoo, I suggest you do nothing! Leave it in a bank until you have some serious advice. OTherwise, your money may well evaporate. If you are retired, you do not want to wait around years while bonds mature, etc. Real Estate is out…too long a period to wait, too much in closing/resale costs. Stop worrying about “tax free” and invest in CD’s where you can withdraw money if you need, quicly. The interest is low, but it is totally safe…you are in no position to take risks with your retirement money..you won’t be able to replace it if you loose it. Your tax bracket is such that the small amount of interest you draw cannot effect you nearly as much as not having money if you need it. AND whatever you do, do not fall for “off shore accounts” sales pitches..sure way to go broke, and even if legit, taxes are due…loopholes have been, and are being closed tighter and tighter. 900,000, even if not invested, should last 18 years, spending 50K per year. Why mess around with it? REliable Mutual funds are a very good investment, paying nice returns, and are liquid. And, PS, Metal is a lousy investment if you do not ride herd over it daily…it is a commodity, a very rough market.
Tax free investments are probably not the best thing for your entire portfolio. It is probably best for taxable investments to make up the bulk of your portfolio.
The reason for this is that the market factors in the tax savings and bids down the price of tax free investments. That is, you earn less from a tax free investment precisely because you don’t have to pay tax on its earnings.
You really ought to get advice from finance professionals if you have this much money to invest.
I’m not a professional, but I’ll throw in my two cents worth.
The decision that will have more effect on your investment return than anything else is how you allocate your assets among stocks, bonds, and cash (money market funds, CDs, etc.).
Even in retirement, you should diversify your investments. In early retirement, you should have an allocation of about 60% bonds, 20% stocks, and 20% cash. Change that allocation every few years so that by late retirement you have an 80-10-10 mix.
I encourage you to read up on index fund investing and on the “couch potato” portfolio and the “coffee house” portfolio.
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I have never disagreed with anyone so much in my life than Goldwing that answered this question earlier. Putting your money in Cd’s or Bonds is probably the worst place to put money it you want it to grow. By the way how safe is it to put money in a place where it barely keeps up with the evaluating nature of the economy. I think the best place as far as return on investment, tax advantages and safety is property. you need to put down 10% per property and buy as much as you can in a market that is growing at least at 8% per year in appreciation. your money can grow as much as 200% per year. Plus it is compounding every year. you can cash out as quickly as 2 to 3 years with a refinance so you can buy more properties. please contact me with more questions.