[toomuchtodo]

Fixed income with qualified dividends somewhat avoids this tax drag.

EDIT: Retracted, I'm mistaken, qualified dividends only apply to returns from a US corporation or a qualified foreign corporation. You would need to build a ladder with a holding period sufficient to realize LTCG rates from a fixed income product.

[tempsy]

What is an example of "fixed income with qualified dividends"?

Interest received from treasuries are taxed like ordinary income. The only special tax benefit is interest income is exempt from state income taxes.

[toomuchtodo]

Comment I replied to used the word "bonds", not "treasuries".

[tempsy]

Which bonds would that include?

"Qualified dividends" is a term used to describe dividends received from equities. It's not a term related to fixed income unless I'm missing something.

There are things like municipal bonds that are tax exempt, but the yield is usually lower.