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My 86 year old mother is in CD's and utilities. She is paying big time federal taxes.

People with wages or salary income, as opposed to investment income, seem better able to deal with income taxes, probably because a substantial part of their income is withheld to cover the taxes. It's good for people with large investment income to set up a similar method -- even making estimated (quarterly) payments helps.

What investments are extremely safe
and tax free.

Municipal bonds may be tax-free, but the yields are arranged to benefit taxpayers with a marginal tax rate of about 36% -- i.e., mostly for those with taxable income well over $100,000. If this applies to your mother, that's good.

Simplicity please.She has an account with TD Waterhouse. Mutual funds ?

Now I'm wondering -- is your mother using income from these CDs and utilities to pay for living expenses? If not, and it's just meant to be a part of her estate that grows for the benefit of her heirs, then tax-managed mutual funds might make sense.

Don't want to appear nosy, but some additional information would help the other people on the board to answer your question.

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