In that tax bracket, I would prefer Treasury bonds, which probably give the best trade-off between return and risk. You might also consider TIPS, which have the same state tax exemption; this depends on how sensitive you are to inflation.I know it's not an easy question, but any advice would be helpful. I have roughly $250k in my Taxable that I just want to keep low risk and create income with. I need to keep this in Taxable regardless of any advice about Asset allocation. I'm looking for something that is slow and steady, tax friendly. Seeking duration of around 5-10 years. I am in the 22% Fed, 9.3% state tax brackets. Here is what I'm considering:
The trade-off is important; you might get a slightly higher yield on CA munis than on Treasury bonds after paying the 22% federal tax, but the higher risk of munis mean that you need more in munis and less in stock to get the same risk reduction in your portfolio.
Statistics: Posted by grabiner — Sat Jul 13, 2024 11:28 pm
