It appears that you’re going to work for 5 (or maybe 10?) more years at your present combined salaries of $250K, and then retire to another state with no debt and estimated annual living expenses of $60K. You’ll also have more than half a million in retirement accounts and about $400K in gains from the sale of your current house after you’ve paid for the new house. Plus, until you make the move in 5-10 years, you will be LBYMs and investing an additional $100K each year.
But, you won’t be really retired, because you’re both going to find jobs in order to get health benefits, and you think/estimate/hope to make $60K a year in those new jobs.
...if I figured out your plan correctly, it sounds like you guys are not planning on withdrawing from your investments for another 13-20 years.
In which case I don’t see a reason to be making a big move into bonds at the moment. Certainly, I would not be putting the amount you’ve referenced in previous posts ($100K+/year for five-ten years) into bonds. Depending on your exact salaries after your move, you’ll be either in the 15 or the 25% tax bracket, and, the exemption amount for the AMT ought to exclude that nasty tax from applying to you. I don’t see tax exempt bonds being very attractive in that situation.
I agree with LOL’s post. Figure out your desired asset allocations and use your tax-deferred accounts to hold bonds. Delay taxable income, that you won’t need for quite some time anyway, by investing in something with capital gains potential and then sell as needed once you’re in the lower tax bracket.