What is the lowest tax bracket?

What is the best investment for a person in the lowest tax bracket?

  • Are there additional tax benefits for dividend funds or anything like that?

  • Answer:

    I would proabbly put money into a ROTH IRA. You pay taxes on the money first (which is fine since you are paying low taxes) then when the money comes out, it is tax free (which is great since you might be in a higher tax bracket then)

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Other answers

Rick B answer is valid. What is important at any tax rate is that you invest "now". Do not consider your current tax rate to strongly. It is your tax rate when your gains are realized that count. It is more important to make good investment decisions. Income taxes are a by-product not an investment driver.

Taxperson

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