While I invest at lot in Munis due to our high marginal tax rates, I always planned to scale back on that once we are in ER since a lot of our investment income will be taxed at 15% if not 0%. But thinking about the Obamacare taxes on investment income which has a threshold of $250K I might do it differently 10-20 years down the line. That is because $250K is not indexed to inflation. So 20 years from now $250K would be much more like $150K in 2013 $ terms. I can see this hitting a lot of people in ER 20 years from now. If so the 3.8% extra tax could be significant. Munis are exempt for this tax as well so I can see me still being in Munis down the road more than I had expected.
"There are no solutions...there are only trade-offs." - Thomas Sowell
Looking to retire or semi-retire by 45 based on our net worth going to $6 million outside our house.