Comments on: Emigrant Direct rate drops to 4.55% http://www.thecornerofficeblog.com/2008/01/11/emigrant-direct-rate-drops-to-455/ An entrepreneurs thoughts on business, personal finance and investing. Thu, 09 Jun 2011 19:02:59 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: jon http://www.thecornerofficeblog.com/2008/01/11/emigrant-direct-rate-drops-to-455/comment-page-1/#comment-24597 jon Fri, 11 Jan 2008 16:00:21 +0000 http://www.thecornerofficeblog.com/2008/01/11/emigrant-direct-rate-drops-to-455/#comment-24597 What are your thoughts on tax-exempt MM funds? I have one at Vanguard and have been very pleased. For those in high tax brackets, from what I can tell, they regularly outperform the highest netting savings accounts - in 2007 it returned 3.58%. I don't know if they are available for every state, and granted I live in NY so my tax rates are higher. But I generally pay about 36% total in tax, making that 3.58% worth nearly 5.6% in a taxable account. Now it's down to 3.02%, still significantly higher (for me) than the Emigrant rate. Is there any flaw in my logic? Thanks. What are your thoughts on tax-exempt MM funds? I have one at Vanguard and have been very pleased. For those in high tax brackets, from what I can tell, they regularly outperform the highest netting savings accounts – in 2007 it returned 3.58%.

I don’t know if they are available for every state, and granted I live in NY so my tax rates are higher. But I generally pay about 36% total in tax, making that 3.58% worth nearly 5.6% in a taxable account. Now it’s down to 3.02%, still significantly higher (for me) than the Emigrant rate.

Is there any flaw in my logic? Thanks.

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