READ MY BOOK THE RACE FOR MONEY TO FIND OUT MORE ABOUT FEDERAL TAX FREE
There are closed end funds on the market which can return 5 percent to 7.5 percent Federal Income Tax free yield. Since they are tax free the equivalent yield could be as high as 9 to 11 percent, based on a 35 percent federal income tax rate. Not bad if you need income tax free. One can also buy more each month with the dividend thus compounding your earnings. In addition, you do not pay any FICA tax on the dividend income you receive which is a 15% bonus for you.