Top Tax-Saving Investment Opportunities for 2024

Investors who have poured cash into money market mutual funds may face higher tax bills in 2023 due to rising interest rates. Money market fund yields are currently higher than any year since the Great Recession, resulting in taxable income for most investors. However, there are other investment options that can help minimize the tax burden. Tax-friendly options for cash include Treasury bills, which offer no state or local taxes on earnings, and tax-exempt municipal money market funds, which allow investors to avoid federal income taxes on earnings. The best option ultimately depends on an individual's risk tolerance and goals.