Beneath you may discover featured charges accessible from our companions, adopted by particulars from our rating of the very best CDs accessible nationwide.

A 4.50% Price You Can Get pleasure from Till Late 2026

At the moment’s highest CD charge within the nation is 4.50%—and you’ve got loads of methods to lock that in. The shortest possibility with that return is a 3-month certificates accessible from PonceBankDirect. Then, eight establishments provide a 4.50% charge for phrases of 6 to 13 months, together with a 9-month certificates from OMB that debuted in our rankings yesterday and a 12-month possibility from Greenwood Credit Union that was unveiled Monday.

On the longest finish, XCEL Federal Credit Union will assure its 4.50% APY for 18 months, which might safe your return till November 2026.

For the ultra-wealthy, municipal bonds aren’t nearly incomes curiosity. They are a method to lock in tax-free revenue, cowl important bills, and release the remainder of their portfolio for higher-growth investments.

However although muni bonds might supply secure revenue, they are not an ideal match for each retiree, and so they include dangers which are straightforward to miss.

Why the Rich Flip to Municipal Bonds

One main cause municipal bonds are standard with rich retirees? Taxes. “Municipal bonds can present secure, high-quality, tax-free revenue,” says Noah Damsky, founding father of California-based Marina Wealth Advisors, noting that they are federally tax-free, however solely often state tax-free.

For instance, munis could also be exempt from state and native taxes should you dwell within the state the place the bond is issued.

Decreasing taxable income could make an enormous distinction for these in larger brackets, making munis a wise method to shield wealth with out giving extra away to taxes.

Plus, the comparatively secure nature of many muni bonds—particularly general obligation bonds backed by a authorities taxing authority (as an alternative of income from a given challenge)—makes them a lovely method to fund day-to-day residing bills in retirement.

Dangers and Widespread Pitfalls to Keep away from

Regardless of their status for security, municipal bonds aren’t foolproof. “Whereas they’re usually top quality, they don’t seem to be with out threat,” Damsky cautions. “They will carry a considerable quantity of interest rate risk and a few credit risk.”

Liquidity is one other concern many buyers miss. “They are often laborious to promote at value in massive blocks, particularly if the market is confused,” Damsky says.

What’s extra, shopping for the incorrect sort of muni may even set off an sudden tax invoice—a shock many retirees aren’t ready for.

For instance, should you purchase a private activity bond, and your revenue is excessive sufficient, the curiosity is likely to be topic to the alternative minimum tax (AMT).

If you happen to’re on the lookout for further secure choices for money administration, you additionally would possibly need to discover high-yield savings accounts for versatile, FDIC-insured savings.

Why House-State Bonds Aren’t At all times Finest

Many high-net-worth buyers purchase municipal bonds issued solely of their house state to keep away from paying state revenue taxes on curiosity earned, famous Damsky.

However concentrating too closely can backfire. “Whereas these bonds may be top quality, focus in a single explicit state will not be optimum,” he mentioned.

Financial or political issues in a single state might hit your portfolio tougher than you anticipate. Diversification nonetheless issues—even for bonds that appear secure.

How the Extremely-Rich Construction Their Portfolios

For the ultra-rich, muni bonds aren’t the entire recreation plan. They’re usually a part of a much bigger technique to create a development and revenue portfolio that depends on property like alternate options too.

“I discover that the ultra-wealthy wish to barbell their portfolios,” Damsky explains. “They need to have their secure cash in high-quality fastened revenue, and have their property past residing bills in high-growth investments similar to private equity, non-public infrastructure, and venture capital.”

As soon as they really feel assured that they’ve secured their life-style with conservative investments, they flip to high-growth investments to proceed to construct generational wealth, he provides.

This method successfully provides them a secure revenue whereas they pursue long-term development.

When Munis May Not Make Sense

If you happen to’re attempting to construct wealth aggressively in retirement—not simply to protect it—relying closely on munis may not be the very best transfer.

“Municipal bonds may be nice for sustaining current wealth, however they’re unlikely to compound wealth over the long run,” Damsky says.

That is as a result of, as fixed-income securities, they provide revenue, not capital appreciation.

Munis could be a highly effective funding device—however like all device, they’re solely proper after they match the job you’re attempting to perform.

The Backside Line

The ultra-wealthy use municipal bonds to create a dependable basis of usually tax-free revenue, protecting their important wants whereas investing boldly elsewhere.

However muni bonds aren’t risk-free, and so they’re not a one-size-fits-all investing resolution. Understanding how they work and after they don’t can assist you construct a retirement plan that matches your objectives.

Enterprise homeowners have a particular alternative when planning for his or her monetary future—when the time involves retire, they will promote their enterprise and mix these proceeds with cash that they have been saving through the years in a retirement account.

Nonetheless, some enterprise homeowners uncover that when it’s time to retire, they haven’t deliberate rigorously sufficient (or in any respect) for all times after proudly owning a enterprise.

Not like staff with pensions or 401(k)s, entrepreneurs have to navigate saving for retirement as they develop their enterprise and plan for his or her exit.

In addition they have to develop a tax-smart retirement financial savings withdrawal plan that aligns with their enterprise exit and retirement. In any other case, each private {and professional} objectives can slip out of attain.

This is what enterprise homeowners have to know to keep away from frequent planning pitfalls and to retire on their very own phrases.

Set Your Retirement Objectives

As an entrepreneur, understanding your private imaginative and prescient for retirement—whether or not it incorporates journey, household assist, or philanthropy—makes it simpler to create a monetary roadmap that is not tied fully to a future sale of your online business.

Set your retirement goals based mostly on this imaginative and prescient, and work towards them by each, constructing your online business and including to your financial savings persistently.

“Many enterprise homeowners overestimate the worth of their enterprise and delay saving outdoors of it,” says Christopher Stroup, founding father of Silicon Seaside Monetary.

He says it is best to deal with enterprise and private objectives as “two parallel tracks.” Saving individually ensures you are retiring by alternative, not as a result of the enterprise calls for it.

Chris Diodato, CFP and founding father of WELLth Monetary Planning, echoes this. “It’s paramount to have no less than some separate funds not related to the enterprise earmarked for retirement financial savings,” he mentioned.

Select the Proper Retirement Account

Enterprise homeowners have a number of highly effective retirement financial savings choices. For these operating solo, SEP IRAs and Solo 401(k)s supply excessive contribution limits with low prices and minimal administrative problem.In 2025, people can contribute as much as $23,500 to a solo 401(okay).

“For self-employed individuals, a person 401(okay) is usually essentially the most enticing choice,” says Justin Pritchard, founding father of Strategy Monetary.

Solo 401(okay)s help you select between pretax and Roth contributions, and even supply options like plan loans and mega backdoor Roth methods, Pritchard notes.

For companies with staff, SIMPLE IRAs and conventional 401(okay)s are frequent. Nonetheless, Diodato warns that SIMPLE IRAs have “too low” contribution limits for formidable savers. Diodato typically recommends SEP IRAs for his or her simplicity.

As a enterprise proprietor, you will want to guage and weigh the pliability, worker wants, and contribution objectives to assist choose the appropriate match for you.

Construct a Enterprise Exit Technique

With out an exit plan, enterprise homeowners danger having to promote in a rush—or for lower than their firm is price.

“Begin early, ideally three to 5 years earlier than exit,” Stroup advises. Good exit planning contains figuring out a superb business valuation, having a transparent succession or sale technique, and contemplating your most popular timeline for retirement.

“A rigorously deliberate exit technique can maximize a enterprise sale worth, decrease tax frictions, and maintain shoppers completely satisfied by way of a clean and long-term transition interval,” says Diodato.

Whether or not promoting to staff, a competitor, or passing the enterprise to household, early planning creates higher outcomes and extra peace of thoughts.

You probably have questions or want steering, work with an knowledgeable to navigate your online business exit.

Keep away from Tax Surprises

Promoting a enterprise and tapping retirement accounts are taxable occasions, however proactive planning can soften the tax blow.

For instance, spreading sale earnings over a number of years, utilizing installment sales, or structuring offers strategically can decrease taxes, Diodato says.

Stroup additionally recommends exploring long-term capital gains remedy or qualified small business stock exclusions the place attainable.

After retirement, strategic Roth conversions and tax-efficient withdrawals may also help protect extra of your wealth.

You probably have a traditional individual retirement account (IRA), which has required minimum distributions (RMD), take simply that quantity to restrict your tax invoice and to maintain as a lot cash as attainable rising tax-deferred.

Plus, work think about working with a monetary advisor to iron out the specifics, like the very best age to retire, when to start out gathering your Social Security advantages (e.g., at full retirement age, early, or at age 70) and the way to keep away from outliving your financial savings.

The Backside Line

Retiring if you personal a enterprise isn’t nearly promoting on the proper time, it’s about planning rigorously, saving properly, and staying versatile.

Beginning constructing your private retirement financial savings early, choose the appropriate retirement account, discover an advisor your belief, and craft a transparent exit technique that can assist you to retire securely and confidently.