The dullest retirement income source can sometimes be the secret ingredient to a successful retirement plan. A vanilla investment may help keep retirement exciting rather than stressful. Many of us could use that kind of break; 63% of Americans worry more about running out of money than dying, according to a 2024 Allianz Life survey. While inflation was the most heavily cited contributor in that context, 22% of survey respondents pointed to high taxes as an area of concern.
If you expect to be in a high tax bracket in retirement, there are strategies you can employ to reduce your IRS burden. One is to house savings in a Roth retirement plan, or do a Roth conversion ahead of retirement. Another is to choose your investments strategically. And to that end, you may want to look at municipal bonds.
