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How State Taxes Put a Bigger Pinch on the PoorThis post is part of a 12-article feature that can be read here: Today's best income ideas.
"You don't have to be in the upper tax bracket to rake in higher returns from these tax-free bonds," says income expert Carla Pasternak.
In her High Yield Investing, she looks two favorite vehicles: Morgan Stanley Insured Municipal Securities (NYSE: IMS), with a tax-equivalent yield of 7.9% and Western Asset Municipal High Income Fund (NYSE: MHF), with a tax-equivalent yield of 11.1%.
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