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Originally Posted by Plinker
I have two Vanguard brokered CD’s paying 5% but is a qualified account. I also have a Vanguard money market account, as you suggest. However, I am curious if there are other products that are guaranteed that will specifically delay interest paid. In other words, I don’t want to pay taxes on the interest annually on some non-qualified accounts. I would prefer to wait a few years to pay those taxes.
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You can buy low interest rate bonds at a discount. For example, buy a bond that is paying 1 percent or less, and will mature in about 5 years. You will get a price that is significantly lower than the face value of the bond. Then, when the bond matures, you collect the face value and you will owe a capital gains tax that will probably be lower than your ordinary tax rate. You will need to pay interest annually on the 1 percent, but you will delay most of the taxes that you will eventually owe.