I live in the Bay State, and in my taxable investment account, I have a boat-load of Vanguard Massachusetts Tax-Exempt fund (VMATX), which, after taxes, returns slightly better than taxable money markets, CDS, etc. I use this as my emergency fund, and fortunately, I haven't had to use it over the last two years.
Its dividends, of course, are exempt from both Fed and State income tax, so I have 100% inputed under "Growth is Tax Free" on the "Growth Taxation" tab. I also have inputed the amount of "Initial LTCG" at the beginning of the plan, which is quite a small number.
Am I set? When I do sell shares, there is some modest LTCG, but by the nature of the fund, it's pretty modest. I don't see a way to keep the dividends tax-free, but model that there may be an eventual LTCG when selling shares of the fund.
TS
@tbsinma Hi, I think you are all set.
Regarding:
I don't see a way to keep the dividends tax-free
I am not sure what you mean by that. Based on your settings, divs on your 'Tax Free Municipal' asset class should not be taxed because you have set 100% Growth is Tax Free.
If you go to Review > Portfolio > Growth and click on any growth amount for the Taxable Investment account, it will show how that growth is taxed by asset class.
Also, if you go to Review > Balance Sheet and click on an amount in the column: "Unrealized LTCG in Taxable Inv. Acct" and then on Asset Details, it will show the starting and ending unrealized LTCG balance by asset class and how much is realized from various account debits, including the annual rebalancing.
@cstone Hi Charlie-
Regarding the Account Growth Metric MRI, I think I have noticed a "bug":
In the section labelled "Growth taxation by asset class:", the total shown for each asset class is the overall account total, not the asset class total.
Thanks!
@lancaster22 Yes, I do see that. Good catch! A fix will be in the next release. Thank for the heads up.
@cstone Thanks for the help! Bit by bit, I am figuring this stuff out.
