For retirees in higher tax brackets holding assets in taxable accounts, "munis" are often the best choice because their interest is generally exempt from federal income tax.
Data as of early 2026. Yields are subject to change based on market conditions. 2026 Outlook: Treasury Bonds and Fixed Income
: High-quality corporate bonds currently offer a "yield pick-up" over Treasuries. Funds like iShares Aaa – A Rated Corporate Bond ETF (QLTA) or the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) offer yields typically between 4.5% and 4.6% in early 2026.
: These offer high credit quality with attractive monthly payouts. The iShares MBS ETF (MBB) is a popular choice for retirees seeking reliable cash flow with risk levels comparable to investment-grade corporates. 3. The Tax-Smart Option: Municipal Bonds