Cash + bonds and taxes
I've accumulated some cash and sold of some of my exFI's Loaded Bond funds
I've read some discussions on how much cash to have and Rich's buckets discussions but not a lot of the tax consequences.
I am FIRE'd and "sold" my company so have probably $70k per year income for 2-3 years then $25k for another 2 years.
I now have 15% cash in MM in a taxable account that I shouldn't need to tap for living expenses for 3-4 years. In a MM I am assuming I pay the interest as Ordinary Income. Any recommendations on "safe" more tax efficient use for this cash?
I think I want a 50% Bond/cash allocation and use Fidelity so VG is out..
What is a good percentage breakdown for the bonds (ie foreign, GNMA,treasuries,tips,high yield,junk etc)?
OOPS one more.
All the good bond funds I've found so far like FAHCX and LSBRX are not very tax efficient. Anyone know of a good Bond fund that is?