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If money were outside, then it would be (1+.7)[to the 5th] * 25K = 36063. Difference in interest rate is 0.9%!

It makes some difference butnot enough to make me tie up my cash, since I will need it for down payments. When I truly have excess cash that I won't need, then it makes sense to put it away so it can grow for awhile and yield more which is still taxed but the capital won't ever have been taxed. MORE ON THESE IN LATER YEARS.

[Noted in top margin with arrow here] If I do anything risky like 25% it should be over more than 3 yr period (1) to average risk 2) to spread load or admin charge) but I don't want to tie up that much money now. [/note] 2) Long term capital gains provide a 60% tax free portion. But I hasten to point out that I am not going to get into stocks yet since I don't have the time, talent or interest to study companies. The only thing I would do is buy a mutual fund whereby I get the expertise of the people