They are also able to have significantly greater after-tax returns.
The difference "represents a 14.04 percent net after-tax return - with no risk."
After all, after-tax return is what counts in determining how much money you keep.
The tax treatment of interest expenses and future gain affects the after-tax return.
The initial after-tax return is about $22 a year ($31 less the 28 percent tax).
Then, you need an after-tax return that's better than whatever a home would deliver.
The corporate goal is an 18 percent after-tax return on equity, which was reached in 1994.
The change would reduce the current after-tax return for corporate investors.
If you can earn a 4 percent after-tax return on your money, the "opportunity cost" of investing $500,000 is $1,666 a month.
There are several sources of data on funds' after-tax returns.
