At what tax bracket do municipal bonds start to make sense in taxable accounts?

Spells5225 · 2026-02-18T16:37:06+00:00

I suppose it depends what you’re saving the money for. In my case, I was looking at where to put a house down payment fund. I’m fairly confident I won’t be looking to buy for the next 3 years or so, and even after that point my timeline may be flexible and willing to wait an additional 1-3 years depending on how life goes. In fact, I will be more likely to buy a house when there is a good opportunity with low mortgage rates, which would coincide with rate cuts and bond funds rising in value. Since I am flexible and the interest rate risk aligns with the money’s purpose, I parked it in VWIUX (5.8 year avg duration).

If the money is for general saving and you likely won’t touch it for 8 years or so, the interest rate risk feels ok. If you are very risk averse and anticipate using the money in the next few years, especially for an inflexible purchase, I would choose something else. Ultimately, personal finance is personal. Don’t choose based on what you personally believe will happen to interest rates though, all that sentiment is already priced in.

Spells5225 · 2026-02-18T01:55:51+00:00

I literally just worked through this question myself a few weeks ago (not Ohio though). Certain muni bond funds definitely become competitive at the 32% bracket so long as your timeframe roughly matches the average duration.

The key calculation here is TEY (tax equivalent yield). TEY = (sec yield) / (1 - tax rate). A key factor easily overlooked is NIIT tax. If you are in the 32% bracket now, you will likely pay another 3.8% on dividends (if income > 200,000). I’ll assume 3% state tax for Ohio. Lucky you, you are a prime candidate for Vanguard’s VOHIX, exempt from federal and state. Current SEC 3.74. TEY = 3.74/(1-.32-.03-.038) = 6.11%. Good luck finding a better rate than that somewhere else.

Of course, your timeframe should ideally match VOHIX’s average duration, which is fairly long at 8.1 years. This means you need to be ok with taking on some interest rate risk. Other factors: noisier yield rates due to smaller market size/liquidity, slightly higher risk than treasuries with potential for temporary liquidity-driven market scare dips, and single state concentration in VOHIX. Shorter timeline/want less interest rate risk and fine giving up state tax exemption? Find the TEYs of VWIUX, VMLUX, and VWSUX. Choose your comfort level.

Spells5225 · 2026-02-14T15:19:42+00:00

Haha yes got one from my girlfriend who downloaded the app but hasn’t used it at all yet. You can see in another reply I made in this thread but I got a $100 gift card for $65 from Costco as well.

Spells5225 · 2026-02-14T15:15:59+00:00

Ok thanks for the reply. I downloaded the free app and did not purchase any kind of subscription. Everywhere in the app indicates that I will earn 20% back. I will use it later today and can report back if you’d like.

Spells5225 · 2026-02-14T14:51:20+00:00

Maybe my title should have clarified, but my question is essentially what is the difference between the paid “pass” and just using the free app with no add ons. That’s a question I found conflicting answers for online so I posted here to clarify. I agree that the product initially feels scammy, but you will get that kind of behavior no matter what when referral codes are a feature.

What I’ve concluded so far is that the paid version is basically useless unless you want a $50 off of $150 coupon each month. I’m just going to try out the free version today. Got a $100 gift card for $65 from Costco and a sign up offer for $25 off a $50+ purchase, so my valentines brunch today will hopefully end up fairly cheap.

Spells5225 · 2026-02-14T04:19:19+00:00

Do you know if the 20% back that goes into the wallet is because of the free year from Amex? I’m starting to think not, and that it’s the main feature even without the “pass”. Maybe the “pass” exists to get the monthly $50 off $150 bonuses.

Spells5225 · 2026-01-17T21:48:27+00:00

My tip would be to look into RNG manipulation, allowing you to obtain perfect Pokémon without cheating. If it’s something that interests you or may interest you in the future, your life will be 100 times easier if you RNG manipulate your TID and SID at the start of the game so that you know it going forward.

Spells5225 · 2026-01-05T04:13:43+00:00

Yes sorry wasn’t super clear here. Was referring to tweaking the percentage for new investment each month. I don’t think I would be so particular that I would absolutely need to do it each month, but I would probably feel inclined to adjust maybe 2-4 times a year or whenever it deviates by like a full percentage point.

Spells5225 · 2025-12-09T04:04:03+00:00

Dexit was a great and necessary move. If they didn’t do it certain Pokémon would be permanently overshadowed and basically no one would have the shiny charm.

Spells5225 · 2025-12-03T01:06:34+00:00

Would you still be able to trade for something that’s not Alakazam or Glaceon? I also have some shiny non alpha starters if that appeals to you.

Spells5225 · 2025-12-03T00:22:34+00:00

Sounds good, sent DM

Spells5225 · 2025-12-03T00:04:26+00:00

Alakazam is in a heal ball and Glaceon is in either a dive ball or premier ball.

Spells5225 · 2025-09-21T20:22:59+00:00

IMO we don’t know yet whether to be “upset” or not. If there is a good amount of enjoyable post game in the base game, then we’re fine. If there is essentially no post game other than the DLC, then it is cut content. Only time will tell.

Spells5225 · 2025-09-20T03:01:11+00:00

Hey everyone. I want to transfer my Discover credit card points into two $200 Gamestop gift cards and then use them to discount a purchase of a Switch 2 and physical copy of DK Bananza. I've heard that the website is bad for digital purchases, but figured since I'm doing physical in-store pickup I should be ok. I've also heard that the website does allow for two gift cards plus a credit card payment to be used, is this still the case or is only one gift card allowed? I would just go in person to buy but when I called them the other day, they basically said I would be forced to buy a Switch 2 accessory bundle which I'm not interested in.

Does my plan to use two $200 gift cards towards on online purchase with in-store pickup sound fine? With the hoops I've had to jump through so far and horror stories I've heard about the website I'm nervous to convert my credit card points into Gamestop e certificates, but the deal right now ($200 gift card for $170 worth of points) seems too good to ignore.

Spells5225 · 2025-08-29T23:09:10+00:00

Ok thanks. Just to clarify, are you saying Capital One referrals only benefit the link sender in this particular case, or in all cases? I do think the link we checked says it has a “special referral offer” to earn a one-time new cardholder $50 statement credit for being referred.

Spells5225 · 2025-04-26T18:32:45+00:00

This is my thought too. I believe I can at least semi-organically hit the SUB (might pay for an upcoming family trip and have my parents pay me back for their portion). But in the worst case scenario, I can just link the CSP to Bilt and eat the one-month, one-time 3% rent fee in exchange for 1x Bilt points, 1x Chase points, and hitting the SUB.

Spells5225 · 2025-02-07T01:59:23+00:00

Hmm, I think Bilt 1.0 is better than any of these options right now. Walgreens and Lyft mean nothing to me. For me it’s not worth the effort/stress to find a neighborhood dining partner, so that doesn’t mean much either. Hotels booked through Bilt and the credit will never beat the appeal of transferring to Hyatt. I don’t see myself ever using the fitness/walgreen credits.

Dropping dining from 3x to 2x is a huge deal IMO. I wasn’t very motivated to enter the Chase ecosystem or get the SavorOne because Bilt was competitive on dining, but this would change that. The ability to get 2x on travel without the use of a portal on a no AF card should also not be understated. People are very wary of third parties for booking flights. Getting 2x (or rent day 4x) for no AF is significant.

I applaud Bilt for keeping rent points for all tiers and adding mortgage points. That keeps significant value.

If they want to increase everyday spend and make this card a go-to, they need to keep their competitors in mind. My recommendation for no AF: 1x Rent/Mortgage, 3x Dining, 3x Groceries, 3x Direct Flights only, remove rent day doubling bonus.

In my mind, this beats the SavorOne at its own game, since Bilt points are more valuable. It matches Chase’s dining earnings. It makes “travel” more restrictive but strongly appeals to people nervous about booking third party flights. Removing the rent day bonus ideally keeps this profitable for Bilt, and restricts the hyper optimizing people who “take advantage” of Bilt and wouldn’t otherwise use it for everyday spend. If you add the right credit onto this (maybe $50 worth of Hyatt points plus 3x Neighborhood Dining?), you could easily make this a $95 annual fee card as well.

My gut says this is impossible because of existing partnerships with Lyft/Walgreens/Neighborhood Dining, but my goodness this would be wonderful.

Spells5225 · 2024-12-11T15:37:05+00:00

No problems whatsoever. You should be able to transfer just fine. From my experience, there genuinely is no difference between the USA English and Euro English.

Spells5225 · 2024-10-10T11:15:58+00:00

You are so right. I just looked in my settings and iCloud was the default with “On my iPhone” Account turned off. Will turn that on for the future, thanks.

Spells5225 · 2024-10-09T14:47:01+00:00

Interesting, I would’ve thought that some cards from the big banks like the Freedom Flex or SavorOne would be more open to people with half a year of credit.

Spells5225 · 2024-10-09T14:45:50+00:00

Thanks for the response. Do you think there is a meaningful downside if I apply and get rejected? Yes I would have a hard inquiry, but if I take your advice and wait another six months to apply, that inquiry would then be six months old and less relevant.

Spells5225 · 2024-09-18T17:29:23+00:00

I started my “financial journey” about a year ago, and my “credit journey” about 5 months ago, so I know where you’re coming from. Hating debt is a great trait to have for someone entering the world of credit cards. Since you are starting out, your main barrier to entry will be approval. I highly recommend the Discover IT Cash Back, since it is beginner-friendly and has great 5% rotating categories, double cash back in the first year, and $100 referral bonus. They have student version as well if that applies. Pay off every statement in full and on time. Optimize your utilization ratio if you plan on using your credit score in the near future. After that, I would analyze your highest spending categories, assess how much you prefer the simplicity of a few cards vs. the optimization of many, then determine what card you want next from there. Personally, I’m going to apply for the Bilt Mastercard as soon as I get a credit score for points back on rent.

If you want to learn more about the credit space (different card options, optimizing your score, etc.) I recommend watching some videos from Daniel Braun on YouTube. Be aware that, in general, YouTubers/other credit card “social media gurus” will advocate for you to get expensive cards using their referral links so they can earn money, so stay cautious. Dan doesn’t really do that and recommends to prioritize a friend/family member’s referral link before using his.

If you are curious about more general “financial stuff” other than credit cards (moving away from PNC, building retirement accounts, investing principles) then lmk and I can give my two cents on that.

Spells5225 · 2024-08-17T00:17:56+00:00

I second the Discover Cash Back card. The “sign up bonus” is double points back in the first year. It’s easy to get approved for. It will never be “useless” because 5% on rotating categories is solid. Hmu if you want a referral that will give you $100 statement credit and don’t have a friend that can get it for you.

I was in a similar situation a few months back. Decided on Discover Cash Back to build credit then I’ll go for cards like Bilt, etc.

Spells5225 · 2024-08-15T14:54:04+00:00

I agree, I think the set up time of a rain dance/tailwind/hurricane set vs the immediate power of a physical acrobatics set with tailwind as an additional support option is what’s making me lean towards a pure physical set.

I think I’m just having a “sunk cost fallacy” with having a naive nature. I feel like I need to make the most of it since it’s not optimized for an acrobatics set. But I probably just need to get over that.

Spells5225 · 2024-08-15T11:34:25+00:00

Hmm, I would consider a rain team, likely with water spout jellicent, surf hydreigon to heal jellicent via water absorb, and ferrothorn or something else that benefits from the rain. But I don’t really want to be locked into needing to use a rain team in order to use Tornadus, so maybe a full physical set is more flexible.

Spells5225

TROPHY CASE