I'm 70 and will retire at the end of March. I have 5 years of expenses in cash in my taxable account. The interest income it produces plus dividends from VTI (plus pension and SS) is pushing our income close to the IRMAA threshold. I don't expect to need to use this money. It is more of an emergency fund.
Is there an investment that is liquid, would preserve principal, return 4-5% that wouldn't be taxed as income each year?
One idea I have is to invest it in PFF (iShares preferred securities ETF). I believe the income would be taxed as qualified dividends at 15% which would would help a little. But it looks like the price does fluctuate somewhat.
Any comments on this ETF? Any other ideas?
Is there an investment that is liquid, would preserve principal, return 4-5% that wouldn't be taxed as income each year?
One idea I have is to invest it in PFF (iShares preferred securities ETF). I believe the income would be taxed as qualified dividends at 15% which would would help a little. But it looks like the price does fluctuate somewhat.
Any comments on this ETF? Any other ideas?
Statistics: Posted by Tracker968 — Tue Dec 31, 2024 1:21 pm — Replies 2 — Views 123