Originally Posted by
Happy
Yeah, with $200K one needs to open 8 accounts or more, then perform X number of transactions / tasks for each account, just so to get that 3% APY... which then is subject to tax. At a mid-range Federal Tax 28% bracket, that 3% APY is reduced to 2.16% only. That is even before State Income Tax. It is not uncommon for high income folks having a 40% total tax liability if they live in high tax states such as NY and CA.
With 40% marginal tax rate and 200k in BD you are getting a better value when you value miles at 1.56cpm or more.
Originally Posted by
Happy
All the multiple accounts talks are just academic and not practical at all.
I cannot imagine the extra work added come tax time.
I am managing more than 8 accounts. Its not really that big a deal once you do the initial setup. You use technology for the grunt work. What's the extra work during tax time? Is there anything more than looking at the 1099's and adding up a dozen numbers?