Depending on macro factors, Munis and other tax-exempt bonds can get you about %4.5 a couple years ago, when equities were lower. YOu want to tie up a portfolio of laddered maturity bonds when the rates are high. [and refunding penalties are substantial; you don't want to get called every time rates decline.]Usually, the munis of the state of your own residence are exempt from the tax of your state as well. therefore, you can keep NEARLY 250k of you $250k income, or else enjoy the same net income on $3.5M. gluck, rammax
You are absolutely correct. What most people do not realize is that they need at least 1,000,000 to retire on any kind of a lifestyle what with ever increasing property taxes and the income tax bite at the state and federal level. People who have spent the last three years at 1% have really put themselves in a hole especially those over 45 years old. You really have to compund your savings at about 15% doubling every 4.6 years to amass any kind of a retirement fund. The only other alternative is to get elected to Congress or be a municipal worker.