Date: Tue, 19 Sep 2006 03:58:27 -0500
From: "Elle" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Options for fixed payouts
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"joetaxpayer"  wrote
> Not to mention the 5% CDs are taxed at ordinary income, 
> yielding 3.75% after tax in 25% bracket, the 3% Div Yield 
> will be taxed at 15% max, yielding 2.55% after taxes.

I forget this important tax point too often. It should be 
tatooed on the arm of anyone (well, at least me) talking 
financial planning. Compound the effects, and we're talking 
serious money. Glad you mentioned it, Joe.

Financial planning vocabulary moment: With reference to the 
initial amount invested in a CD or a stock, it's 
"principal," not "principle." Don't want to confuse anyone 
new to all this.

For a good "financial planning read" courtesy of one of our 
regulars, see www.joetaxpayer.com .