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Implication being payments received are tax deferred. Ie if you invest 1000 and get 10%
  • first 10 years payments of 100 are tax free
  • cost basis of shares go to 0
  • payments beyond 10 years are cap gains
  • selling your investment for 1000 would trigger a cap gains (long term if held more than a year)
Very different than a Money market fund
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Can be more tax efficient if you have a 1+ year holding period
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