Income ususally means taxable. So good quality muni bond fund should be considered. They usually pay better yield after tax than lower rated corporate bonds.Two I like are NQS and BLE. But there are lots of good ones out there to choose from.In the flight to quality last fall, people dumped their munis as well as corporates to buy Treasuries and presumably CDs. That made for some remarkably high yields (caused by deeply discounted prices). The market has slowly recovered, but yields are still quite good.