Quote:
Originally Posted by mickey100
That's a good point. You may be able to get 7 or 8% on an investment for awhile, but there is no guarantee you will have that for 20 or 30 years. And another point is that you will be taxed on that investment. On the other hand, the bond interest is not tax deductible.
You can go to the districtgov.org website and there is an area where they show the amortization tables for the bonds. For example, if you live in district 10, unit 187, you have a 5.9999% interest rate on the a $22,851 bond, and over the life of the bond, you will pay $1735 per month, for a total of $52,063.
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What does the interest on the bond not being tax deductible and investment income being taxed have to do with anything? Unless you pay off the bond in monopoly money, the income you used to pay it WAS taxed.
And BTW, the historical ROI in the stock market over the last 100 years is about 8%, so on a 30 year investment, you should be pretty close to that average, not just "for a while"