BOXX ETF
This post is for knowledge sharing only. It is not intended to be investment or tax advice. BOXX ETF is a new financial product that offers nearly identical returns and risks to treasury bills, yet it may be more tax-efficient: You only have to pay capital gain tax on the shares you sell, not on all the savings you have. If you hold onto the shares you sell for over a year, you'll pay the long-term capital gains tax, which is lower than the tax on both ordinary interest and treasury interest. Sell shares within a year of buying them, and you'll pay short-term capital gains tax. It's the same rate as the tax rate of ordinary income but higher than the tax rate of treasury interest. Heavy tax on interest Every family should maintain some cash reserve as family emergency fund. The headache is that the interest generated from such cash reserve is taxed as ordinary income each year. For high income earners in California, The tax rate on interest can be as high as 51% includin