Suppose you are a high tax bracket individual and you want to shelter your investment income.The best choice of investment for you to minimize the tax bill is to invest in _________.

Question

Quizplus · Accepted Answer

Municipal bonds are issued by state and local governments and are exempt from federal income tax. This makes them a tax-efficient investment option for high tax bracket individuals looking to minimize their tax bill. Bond portfolios and stocks with high dividend yields may still be subject to taxes on investment income, while stocks with low or zero dividend yields may not provide enough income for an investor in search of tax sheltering.

Suppose You Are a High Tax Bracket Individual and You