Taking income and doing Roth conversions are just two of many ways that you could wind up in a high tax bracket. Another way is simply getting paid a lot of money. Taking IRA distributions (whether for RMD or for other reasons) is likewise just another way to wind up in a high bracket.
What matters is your effective tax bracket, not how you get there.
Then there are quirks in the tax rules that distort tax brackets. For example, if some but not all of your capital gains are taxed at 0% because your taxable income is low enough, then every dollar of ordinary income you add will likely cost you an extra 37¢ in taxes. That's 15¢ tax on a dollar of cap gains that used to be taxed at 0% plus 22¢ on the extra dollar ofordinary income. So your effective tax rate is 37%, even though you are nominally in the 22% bracket.
Again, why that extra dollar of income is taxed the way it is doesn't matter. All that matters is whether that last dollar of income gets taxed a lot (high effective tax rate) or a little (lower effective tax rate). If the effective rate is not high enough, munis are useless.

Munis are good for high federal tax brackets; there could be high state tax in addition. So, look at effective/tax-equivalent yields. Barron's had a recent piece that munis now have tax-equivalent yields of 5-8% and are attractive. They are useless for lower tax brackets.

Not so useless if you are taking income and doing Roth conversions or RMDs. Why add tax burden to SS? Inherited money needs to go into taxable account. Why add tax burden there, especially if you are taking RMDs?

I'm in a similar boat @dtconroe. I had a couple CDs mature and I moved the $ to the Schwab MM, for now. ~5.1%, with flexibility, is a pretty darn good return. But if CD's are flat or dropping the MM account can't be far behind. This morning I see 1 to 2 year rates ~ 5.6 to 5.5%. 5 year is also 5.5%. I think it wouldn't be a bad choice to start extending the maturity date if the intent is to keep that money in cash anyway - I'm thinking out loud here.

I have been watching CD rates closely, and since the FEDs raised rates in July, CD rates are about the same, maybe a little less. Shortly before the FEDs rate hikes in July, I purchased 3 CDs (6 and 9 month) for 5.3%, but at Schwab Brokerage, you can only get 5.3% in the one year category. It appeas CD rates have fallen slightly in all other shorter and longer categories. Money Market rates have gone up significantly at Schwab, since the last FED rate hike, and are now paying over 5%. I now have more CDs maturing, and my inclination is to just put the proceeds into 5+% MMs, and wait a little longer to make investing decisions with some growing cash.
If you have been using CDs extensively for the past year, I would be curious what your plans are with your available cash.

Timing for debt downgrade is never ideal. While odd, Fitch had the US on negative outlook and may have deliberately avoided the period around the debt-ceiling fiasco, a mistake that the S&P/McGraw Hill made on 2011.
Only 2 US nonfinancial companies, JNJ & MSFT, are rated AAA. These aren't related to the US debt rating.
But in 2011, all US financials were downgraded to AA+ or lower on the theory that no US financial could have debt rating higher than the US. This when only the S&P did the downgrade. IMO, some US financial could easily be AAA, if not for this artificial ceiling.
There was a temporary hit to stocks in 2011 after the S&P downgrade, but McGraw-Hill suffered more. Basically, it disappeared as a public company, and today, there are public S&P Global/SPGI (in the meantime, it also gobbled up all of the Dow Jones indices) and only private McGraw-Hill Education.
For years, people said that 2 out of 3 major ratings counted, so the US remained AAA/Aaa even after the S&P downgrade.
But now, with Fitch (owned by Hearst; also publishes Cosmopolitan, Seventeen, etc) joining S&P, 2 out of 3 becomes AA+.
Moody's/MCO (with 13.45% owned by Warren Buffett/BRK) remains at Aaa.
The SEC recognizes 10 NRSROs - Nationally Recognized Statistical Rating Organizations, but so far, the big 3 count. Note that DBRS is now owned by M*; Kroll is the old Duff & Phelps. www.sec.gov/about/divisions-offices/office-credit-ratings/current-nrsros
Edit/Add. There was a Fido alert last night of an event in my brokerage account. It was on the downgrade of my Treasury holdings. Schwab & Vanguard haven't sent similar alerts yet.

SPY and IEF (7-10 yr Treasuries) 1 year prior and 1 year after, July, 2011. Keep in mind, many financial markets and economies had still not settled from 2008, especially Europe. One would have made money in many bond areas.
Global markets Aug 1, 11:30pm EST (active data, click anytime)
I don't think the big money, at this time, cares about the Fitch move.
Edit: PERHAPS a nice excuse to take some profits from the hyper performance this YTD in some categories, at least by some of the big players.

https://seekingalpha.com/article/4622176-nhmax-way-to-add-duration-and-yield-high-tax-payers?mailingid=32261069&messageid=2850&serial=32261069.1494&utm_campaign=rta-author-article&utm_medium=email&utm_source=seeking_alpha&utm_term=32261069.1494

"Unlock this article with PREMIUM service." Nope.
https://www.morningstar.com/funds/xnas/nhmax/quote

I can’t usually read SeekingAlpha. But, Apple was able to get me in the door here without my having to hand over any personal info. Of course “In Apple I trust.” Really is a good article touching on both munis and corporates. Speaks positively about munis from a current investment standpoint.

https://seekingalpha.com/article/4622176-nhmax-way-to-add-duration-and-yield-high-tax-payers?mailingid=32261069&messageid=2850&serial=32261069.1494&utm_campaign=rta-author-article&utm_medium=email&utm_source=seeking_alpha&utm_term=32261069.1494

"Unlock this article with PREMIUM service." Nope.
https://www.morningstar.com/funds/xnas/nhmax/quote

In August, 2011, S&P downgraded US treasury and the stock market tumbled. Will it be differ this time?
https://npr.org/sections/thetwo-way/2011/08/08/139081051/developing-in-wake-of-s-p-downgrade-watching-the-markets

Update:
https://www.sec.gov/Archives/edgar/data/1586009/000121390023062022/ea158908_497.htm
7 1 ea158908_497.htm 497
Wildermuth Fund
Supplement dated August 1, 2023, to the Wildermuth Fund Class A Shares and Class C Shares
prospectus and the Class I Shares prospectus, each dated July 29, 2022
and to the Statement of Additional Information (“SAI”) of the Class A, Class C and Class I Shares of the
Wildermuth Fund dated July 29, 2022
On July 28, 2023, the Board of Trustees (the “Board”) of Wildermuth Fund (the “Fund”) approved, based on the recommendation of Wildermuth Advisory LLC: (i) the termination of the Fund’s Distribution Agreement with UMB Distribution Services, LLC; (ii) the termination of the Fund’s Distribution Plan relating to Class C shares; (iii) the termination of the Fund’s Shareholder Services Plan and Agreement relating to Class A and Class C shares; and (iv) the conversion of all of the Fund’s outstanding Class A and Class C shares to Class I shares (the “Class Conversion”). The termination of these agreements and plans, effective July 31, 2023, will discontinue services that are no longer needed because the Fund is in liquidation. These actions are also expected to lower expenses for the Fund and shareholders.
The Class Conversion, which is expected to occur on or before August 15, 2023 (the “Conversion Date”), will be completed based on the share classes’ relative net asset values on the Conversion Date, without the imposition of any fees or expenses. The Fund’s Class A, Class C and Class I shares have the same fee structure, except that Class I shares are not subject to distribution or service fees and the expense limitation cap for Class I shares is lower than that of Class A or Class C shares.
Furthermore, effective as of August 1, 2023, the “SUMMARY OF FUND EXPENSES” section in the Class I Prospectus is restated as provided below based on Fund expenses for the period from April 1, 2023 to July 28, 2023...

Fitch comments https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023
Edit/Add. Yellen's press release https://home.treasury.gov/news/press-releases/jy1665

It used to be that munis had less credit risk than taxable bonds with equivalent credit ratings. That is, a BBB muni was as safe an A-rated taxable bond. This all changed a dozen years ago when muni ratings were "recalibrated". Now, the risk of an A rated muni is similar to the risk of an A rated corporate.
This recalibration may have been more significant for investment grade munis, but some HY securities were affected as well.
Fitch: https://www.fitchratings.com/research/us-public-finance/fitch-announces-recalibration-of-us-municipal-bond-ratings-25-03-2010
Moody's: https://investorrelations.hawaii.gov/dhhl/wp-content/uploads/sites/4/2014/02/Moody_Rating_Implementation_Guidance.pdf

MRFOX, which I profiled in Feb. 2019 I believe. +3% LT vs. SP500, 3.3% 5yr; .9% 3yr; 4.0% 1yr. No down years in its 7.5 year history. YTD +9.20%. Mid-cap growth.

Munis are good for high federal tax brackets; there could be high state tax in addition. So, look at effective/tax-equivalent yields. Barron's had a recent piece that munis now have tax-equivalent yields of 5-8% and are attractive. They are useless for lower tax brackets.

Yields on all of my bond funds, except munis, have steadily increased over the past year. My taxable bond funds are all yielding well over 5%, and of course, you can easily capture yields over 5% with CDs, short term bond funds. Even money markets are approaching 5%. However, my pitiful muni funds are not yielding much more than 3%. Unless you are in a high tax rate, I can see no benefit to owning munis right now. I don’t understand how this situation transpired. Why haven’t muni yields risen proportionally like other bond funds? They dropped in value, like all bond funds, in response to rising interest rates, but they don’t seem to be increasing their yields this year like taxable bond funds.

Drop back 15-20 yards and punt

Funny, that. giggle.

@finder. Consider USFR a Floating rate etf with a 7 day duration, 5.28% 30 day sec yield which I expect will increase in the next week. All US treasury bills. No state tax. Easy peasy. Can be bought and sold anytime. Pays monthly.

Motherlovers!

Years ago someone in law enforcement told me that when they followed through on identity theft complaints, they found 80-90% of this crap was originating in Russia. (No idea if still true.)

Would be no surprise. Anne Garrels' book, "Putin Country," was a revelation. Russia's government is not a government; it's a mafia-style-ocracy. A gang-ocracy. Extortion, intimidation, graft, theft, rape, all sorts of violence and blackmail. And the "government," as we already know, is the sponsor for such criminal junk.
https://en.wikipedia.org/wiki/Anne_Garrels

Stable-Value (SV) Rates, 8/1/23
TIAA Traditional Annuity (Accumulation) Rates
No changes.
Restricted RC 6.75%, RA 6.50%
Flexible RCP 6.00%, SRA 5.75%, Newer IRAs 5.20%
TSP G Fund hasn't updated yet (previous monthly rate was 4.00%).
Options outside of workplace retirement plans include m-mkt funds, bank m-mkt accounts (FDIC insured), T-Bills, short-term brokered CDs.
#401k #403b #StableValue #TIAA #TSP
LINK