TX_Tiger23

You can’t compare high yield savings accounts and money market. They’re different risk spectrums.

On talent…nope!!!

And your “CFP” was appointed with Prudential already so he showed you them. Did you ask him for comparable quotes from others?

Horrible answer

San Diego

Capital One Savings is what I would recommend, not checking. Checking is good when she’s a little older and needs it when she’s out with friends, has a job etc.

If he sticks with finance tell him to take as much accounting as possible. An accounting degree can transition to finance fairly easily but a finance degree can’t jump into an accounting position. I have a finance degree. Also, begin networking and following people in positions he wants on LinkedIn.

You can do short term muni’s to avoid too much interest rate risk just like you’re talking with a taxable money market. You can even do tax free money market. But with short term bonds and money market you’re subject to interest rate cuts by the Fed.

You can build out a muni bond ladder or a muni bond ETF ladder with bullet maturities to reduce interest rate risk.

But I do agree with being aggressive with conversions now to avoid an unpredictable tax burden from RMDs in the future. Especially since it sounds like you’re young enough where IRMAA will be irrelevant for a while.

And be cognizant of the 5yr rule if you’re under 59.5 with the conversions.

But basically I think the question is not so much to use muni’s or not but how much interest (inflation) risk you want to take. You can use taxable or tax free’s depending on the bracket you’re in. There are some great short term bond ETFs from PIMCO, Fidelity etc. And they have both muni and taxable ones. Not quite as safe as money market but you’ll get more yield too.

Hope this helps.

This is very confusing and you might want to edit.

You have a lump sum that is non-qualified, so you mean a severance or early retirement payment? If it’s non-qualified why would you live off of it until it runs dry? You’ll be in a low tax bracket. Convert portions of IRA to Roth.

What do you mean by a 3 year window?

Why are you comping money market and the muni market?

Muni’s are great if you’re in a high tax bracket. But if you’re retired and in a low bracket focus on Roth conversions, not spending a taxable account for the next 3 years.

Again, not trying to be rude just trying to understand all of the variables.

The sushi restaurant was ok but nothing I’d do again. Their pizza place is excellent!