Travelwanted
Recycles dryer sheets
I have high-yield, int-term and limited-term tax-exempt bonds in taxable account now because of current tax bracket. No brainer better after tax return now.
However, once retired, my income will drop significantly...just interest, dividends, distributions. It will stay below 250k, but be above 74k, putting us in the 25% income/15%ltcg/qual dividend brackets.
At that point it seems the tax-exempt funds are no longer the better after tax return assuming apples-apples bond funds.
Am I seeing this correctly? And if so, at that point does one bail on those and convert to taxable bonds?
Thanks.
However, once retired, my income will drop significantly...just interest, dividends, distributions. It will stay below 250k, but be above 74k, putting us in the 25% income/15%ltcg/qual dividend brackets.
At that point it seems the tax-exempt funds are no longer the better after tax return assuming apples-apples bond funds.
Am I seeing this correctly? And if so, at that point does one bail on those and convert to taxable bonds?
Thanks.