I am getting close to ER and preparing to diversify (instead of picking a date, I am picking a stock market value - on that date I sell and start - could be 6 months - could be forever!). When I get there, I am planning to follow the general principals described in this group. However, I have been looking at bonds recently and it seems that municipal bonds (various cities, states, etc.) pay well and hardly ever default. Is this a better choice than TIPS or equivalents? It just seems that most States don't default and I could get a better rate or return (and with a little diversification) be relatively safe. What are the thoughts of the members?