Thanks hacksawdave. I think I understand your reasoning. An argument could be made, however, that if you're in a miniscule tax bracket you may be able to get a better return with non-muni bond funds. In other words, if you do a tax equivalent yield comparison with what you are saving in taxes (as per your federal and state brackets) there is a sweet spot whereby it's in your best interest to invest in state muni funds. In my case (top brackets) the tax equivalent yield of the muni funds is clearly better. However, in much lower brackets you will actually make more money (even after taxes) by going with treasury bond funds.
Statistics: Posted by idoc2020 — Thu Jan 23, 2025 4:20 pm