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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]What kind of bonds are these? If they’re paying 4% after tax, they sound riskier than US treasuries. The 1.1% fee would reduce your return to very slightly above 2 year US treasuries, which are state tax free and fee free. If this is your cash portion, It doesn’t make sense to put it in risky investments that could default. US treasuries are backed by the full faith and credit of the US government. Roll your own 6 year bond ladder. Not hard to do at all at your brokerage. Did you already max out I Bonds for the year? Those are paying 7.2, then 9.6 for a year. You could even front-load all 6 years using the gift box method.[/quote]

This is the OP.  Thanks to all of you who have replied so far.

So these are municipal bonds and so they have selection of municipal bonds in this ladder and that is why it’s federal tax free 4 %.  Obviously fees eat in this and so return is lower.

How do you create this ladder if I have access to Fidelity?  Which bonds do you pick and what duration do you pick?  I’m willing to do this in my own but not sure if the specifics.[/quote]

How much money are you investing into this bond ladder? You want it to pay out yearly for 6 years? Do you want it to rollover after that? Is this money you will need at a specific time for a specific purpose or is it an emergency fund? Have you invested in I Bonds yet this year? What state are you in?[/quote]

Ok will try to answer some of these questions:  about 100k, don’t need it for 5-10 years, it’s part of bond allocation, married and high tax bracket.  6 years is mentioned only because that is what the financial advisor mentioned.  I just want a nice a higher return than have this money in cash at this point but it’s not part of stock allocation a d so not right for stocks.[/quote]

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