I live in CA and am still working full time, looking to quit working in corporate early in 1-2 years and live off my brokerage and cash accts. Because of my income from work i end up paying a lot more in taxes every year because of the interest from HYSA and CD that I’ve been putting my cash in.
I am not super familiar with bonds but have heard/read about some like SGOV that could be a better option than a cd or HYSA to avoid paying so much in taxes.
If I were to move a lot of this cash to a fund like SGOV, my understanding is it works similar to cash in terms of liquidity and that you don’t pay tax or capital gains when you withdraw the money.
Does anyone know if you withdraw money from a fund like SGOV, does it count towards your income for the year like when you realize gains from a stock?
I am looking to start doing Roth conversions when I quit corporate and have lower income years and I am planning on how to do that while also staying under the number for ACA healthcare subsidies (if those are still around by then).