In the current environment still lower interest rate and changed tax regime, the classical asset allocation involving stocks and bonds is becoming less efficient specifically when it comes to individuals with long term saving accounts with high tax bracket. Earlier, Muni bonds were a good alternative, specifically for corporations and pension funds to earn relatively healthy after tax returns. But due to change in highest earning tax rate, from 35% to 21%, for corporations, the Muni bonds are becoming less attractive overall going forward.  A better and efficient long term tax efficient strategy would be to also partially include non qualified annuities in addition to stocks and bonds, in regular saving accounts, so that long term investments are not too much exposed to high dividends related higher tax bracket which is up to 20% currently. In addition, given the current headwinds in the emerging markets debt instruments, allocations in credit rated short to midterm investment grade bonds would be a safer option for bonds.