From: "HW \"Skip\" Weldon" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Oregon state tax exempt funds?
Date: Sat, 1 Jul 2006 08:05:23 -0500
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On Fri, 30 Jun 2006 03:46:34 -0500, kramer.newsreader@gmail.com wrote:

>Bond funds are interesting, but I'm also quite interested in tax exempt
>equities funds as well.
>
>This *#%$ing 9% income tax and 9% captial gains tax is *#%$ing killing
>me.

Assume you know that stock dividends - at least "qualified" dividends,
which is most of them - qualifies for the 15% federal cap.  And if you
already are in the 15% bracket, less.  While this doesn't
automatically help with Oregon, a dollar saved is a dollar saved.

Also, choose stock funds with low turnover (turnover is what leads to
capital gains distributions each year even if you reinvest).  Low
turnover means either a tax-managed fund or an index fund.  For
example, I can't remember the last time VFINX (Vanguard 500 Index) had
a capital gains distribution.  And with a qualified dividend yield of
under 2%, it approaches tax-deferred while still offering capital
gains when sold after holding for at least one year.  Hard to beat.

As for Oregon taxes, remember that no State runs on air.  They are
either getting money from income tax or some other tax.  Around here
it is auto, sales and property taxes.  Ugh.



-HW "Skip" Weldon
 Columbia, SC