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Here, financial advisors explain the best and safest investments for those who haveover-saved for retirement.
Its not unusual for people to be in a 24% federal bracket and a 6% state bracket.
This includes making catch-up contributions before you retire.
Remember after the age of 50, you could put more money away every year in your tax-sheltered accounts.
So consider saving more.
I think Vanguard is paying as much as maybe 4.7% or 4.8% for a short-term bond fund.
So thats a good opportunity to save in arelatively safe investmentwithin a tax sheltered employer account, Finke said.
Another thing to consider is an I-bond.
Everyone is allowed to put $10,000 per spouse away per year into these bonds.
you could buy them directly through the government atTreasuryDirect.gov.
And you dont have to pay taxes on the interest until you sell them.
While youre at TreasuryDirect.gov,, dont forget to look at rates on treasury bills.
These are any treasury bill that has a maturity of less than one year and rates are pretty high.
Get a Multi-Year Guaranteed Annuity (MYGA)
MYGAs are guaranteed annuities pretty much like a CD.
For example, lets say youre 62 and you buy a 5-year MYGA.
By then, you may be in alower marginal tax bracketafter you retire.
While the returns are relatively modest, they tend to offer higher yields than savings accounts, he said.
So it can be atax efficient substitutefor something like a CD that also offers the benefit of lifetime income.
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