simon_temp...[at]hotmail.com wrote:

- quote -

I assume that there will be "some" earned income to support
such contributions?

- quote -

Your main goal should be to maximize your after-tax income.
Tax exempt bond funds may not do that for you, unless your
tax bracket is 25% or higher. Short or intermediate term
bond funds (taxable) may be a better fit, since you are
looking for a secure income stream with low risk.

High yield taxable funds, while attractive, come with their
own set of risks and returns are not that much better than
intermediate term funds.

- quote -

Moderator:
misc.invest.financial-plan

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

This question may be better answered at misc.invest.financial-plan.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

simon_templar[at]hotmail.com wrote:

- quote -

If you're taking a lower salary, you may be in a lower tax
bracket, which means that tax-free investments aren't as
advantageous.

IIRC, high-yield (i.e., junk) bonds aren't paying a huge
premium over better-quality bonds right now, so they're not
as attractive as an investment either.

You might look into decent-quality corporate bonds.

I also happen to like treasuries, but I live in a state (CA)
with a high income tax, which makes the tax advantage
significant.

I happen to like intermediate term bonds now. There's too
much uncertainty about interest rates for me to go
long-term.

-Jim

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

I am considering a career change - this would involve a
lower salary for a bit.

What are the best options for maximizing income from a
portfolio?

I have 350K in taxable investments, 310K in retirement. No
debt other than a 100K mortgage; and a very low monthly burn
rate. Given that I don't plan on touching the retirement
funds for another ~25 years, I know I'm in decent shape
there. I also plan on adding the maximum IRA contributions
for my wife and myself, to further augment that bucket.

To mitigate the salary cut, I was planning on putting a
portion of the 350K in some form of income-producing
investment. The base options I see are (a) tax-free bonds
at ~4-5% (b) high-yield taxable bonds

But I know there have to be others. Any opinions?

Thanks

Simon

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >