How about Tax-Free Securities and Tax Shelters?

 How about Tax-Free Securities and Tax Shelters?

Should you consider tax-free securities and tax shelters? No, I don't  think the average investor should use these investment vehicles.

People seeking too many tax benefits frequently end up investing in questionable or risky ventures. The investment decision should always be considered first and tax considerations made a distant second.


This is particularly true in today's environment of a lower top tax bracket. One of the greatest tax advantages during the early 1980s was to make long-term capital gains at the lower capital gains tax rates.

Overconcern about taxes can seriously confuse and cloud your normally sound investment judgment. Common sense should also tell you if you invest in tax shelters, there is a much greater chance the IRS may decide to audit your tax return.

The tax-shelter game is a fertile field for potential scams and fraudulent promotions.

Learn how to make a net profit, and when you do, be happy about it, rather than complaining about having to pay tax because you made a profit. Would you rather have a loss so you have no tax to pay?

Recognize at the start that Uncle Sam is always your partner and he will participate in his normal share of your wages and your investment gains.

I have never bought a tax-free security or a tax shelter. This has left me free to concentrate on finding the best investments possible.

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