📱 Best Platforms
Fidelity, Schwab
📖 The Hustle
Build a ladder of municipal bonds with staggered maturity dates — bonds maturing every 6-12 months. Muni bond interest is exempt from federal taxes (and state taxes if you buy in-state bonds), making the after-tax yield higher than it looks. As each bond matures, reinvest the principal into a new long-dated bond at the top of the ladder. This creates a self-sustaining, tax-advantaged income stream perfect for high earners.
🚀 First Step
Open a Fidelity brokerage account, navigate to the fixed income screener, and buy one highly-rated municipal bond maturing in 12 months.
🔑 Keys to Success
- Buy bonds rated AA or higher — municipal defaults are rare, but you want to avoid the exceptions
- Structure maturities every 6-12 months so you always have cash coming available to reinvest or spend
- Buy in-state muni bonds when possible to avoid both federal and state income taxes on the interest
🛠 Tools & Resources: Fidelity, Schwab, EMMA (MSRB), BondCliQ, Bloomberg