Vanguard Tax Exempt Funds

When it comes to mutual funds, and value in mutual funds one of the first and best names to come to mind would have to be Vanguard Mutual Funds. Vanguard offers a large variety of mutual funds, including some funds that are tax exempt for both state and federal taxes. Of course, if you’re looking for something other than that, Vanguard also has a large variety of other funds, as outlined in some of my other articles.

Some of the Vanguard Tax Exempt funds focus on residents of particular states. Most states are listed actually, so chances are if this is something you may be interested in, you may be able to invest. Some of the states featured in these tax exempt funds are New York, California, Florida, Massachusetts, New Jersey, Ohio, Pennsylvania, and more. Also included in these special state residents tax exempt mutual funds are two different ones, which help differentiate what type of investment you are looking to do. Vanguard mutual funds offers both short term, and long term state resident tax exempt mutual funds, so you can pick out the right mutual fund for you and don’t have to necessarily settle for a mutual fund that’s not exactly what you’d like.

Vanguard offers a lot more than the state resident tax exempt funds, incase it’s something you’re not interested in or your state isn’t listed. Other offered Vanguard Tax Exempt mutual funds include a short term tax exempt fund, tax exempt money market account, a general limited term tax exempt, limited term tax exempt, and a long term tax exempt. Vanguard may also offer a variety of other tax exempt funds; these are just the funds I researched as of August 2009.

The reason Vanguard has such a large variety of tax exempt funds is because they tend to appeal to people a lot, as income taxes can be quite the burden on investors. Because of this, they try to allow a variety of options for even the hard to please investor. They offer long term, short term, intermediate term tax exempt funds, so that hopefully there is something for everyone who is looking to invest in tax exempt funds. Overall, I invest with Vanguard, and I’m very happy with the way they handle their business, and would recommend it for others. And although I don’t currently own any tax exempt funds, I will in the future as I know people that do, and they are happy with the results of the fund. Surprisingly they do earn pretty good dividends.