What would be the best investment vehicle after all tax advantage accounts and post tax investments have been made in the stock market/Indexs.

For instance, where would you put $100k+ extra based on today's interest rates? Currently used Fidelity and am in Money market at 4.47% .

Our state does not have income tax but our federal tax bracket is very high 35%

Recently saw this on floating note ETFs. https://www.reddit.com/r/Bogleheads/comments/11prp0b/_/

Any suggestions?

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Ruminant t1_jegr40m wrote on March 31, 2023 at 10:10 PM

The classic answer is municipal bonds, preferably through a diversified mutual fund or ETF. A municipal money market mutual fund would work best as a cash equivalent. Since your state does not have an income tax, you can choose a nationally-diversified fund rather than one focused on a specific state.

You'll want to run the numbers to see whether the (typically lower) returns on the municipal fund give a higher after-tax yield than paying federal taxes on other options. But I imagine a 35% federal rate is high enough that you'll benefit from a municipal bond fund.

Since you already use Fidelity: https://www.fidelity.com/mutual-funds/fidelity-funds/municipal-money-market

DeluxeXL t1_jeglape wrote on March 31, 2023 at 9:29 PM

Schedule a meeting with a fee-only CFP and discuss.

I would still invest any cash beyond short term needs/wants in equities.

Intelligent_Pair OP t1_jeglrfu wrote on March 31, 2023 at 9:32 PM

I've considered doing that but I think I'm also saving up for a new house and have a few other big items coming up so just wanted to park cash somewhere for a little bit.

nozzery t1_jegm5qj wrote on March 31, 2023 at 9:35 PM

Individual tbills held to maturity, no state tax

Intelligent_Pair OP t1_jegmby9 wrote on March 31, 2023 at 9:36 PM

Understood and we don't have state tax. However, I'm trying to think about better vehicles for federal tax if there are any

nozzery t1_jegmx7s wrote on March 31, 2023 at 9:40 PM

MYGA is like a CD, but with tax deferral until you withdraw, blueprintincome.com