[USER]

Recently saw someone say invest in tax free bonds. While I like my 4.3% hysa taxes will hit me hard.

Anyone with experience on bonds?
Best way to enter and invest in bonds?

Can do $100,000 to $1,000,000 but main goal is to make income during upcoming early retirement in the next 3-6 months and save on taxes if possible.

[Shawn]

We don’t know anything about your situation. I like HYSAs mostly for liquidity, they are not an investment. Treasuries are state tax free.

I don’t think municipal bonds pay enough to be interesting.

You might be better with a larger stock allocation. How much do you have in HYSA? Do you need it?

Why?

[Shan]

There are tax exempt bond funds and money market funds out there. I am thinking of Vanguard in particular.

You would have to do the calculations to determine whether the lower yields are justified for the tax exempt status.

[Author]

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