For reasons both personal and macroeconomic, I am currently sitting out of this market parked in a high interest savings account @ 4% return. Based on my plans I will want to stay in cash and equivalents at least the next 12 months. We are a relatively high-income household (>$400k w2 wages) so taxes are pretty rough. Are there any investments that would be more favorable at the federal tax level? (I am resident of a state with no income taxes). Qualified dividends would be half the taxes, but as far as I am aware, there is not a risk-free version of that.
SGOV looks a little better at 4.2%, but as I understand the taxation isn't any better, the dividend is taxed as ordinary income. Is this understanding of how the taxes work correct?
What's the best return/taxation investment right now for parked cash?