1. Variable annuity with good aggressive fund choices, such as is available with Sun America and with American Skandia. Principle advantage is deferred tax growth on dollars that cannot be in an otherwise tax-advantaged vehicle (such as IRA, 401k, SEP, etc.). Principle disadvantage...are fees and insurance mortality expenses.Depends on your emotions. I think hard numbers will tell you to skip the annuity, but then you have to invest your money. Maybe an index fund or two. Remember, an anuity payment(other than principal) is taxed at your regular tax rate. If you invest on your own taxes should be at a capital gain rate. 2. Direct stock purchases with these funds. Principle advantage...no bogus expenses taken out by fund managers and insurance companies. Principle disadvantage...must pay taxes annually on dividends.Dividends, unfortunatly, are not all that much. Could buy stocks that do not pay dividends. I think I would pick the best stock and not worry about the tax on dividends, if any. 3. Purchase undeveloped land here in Maine for future woodlot sale. Keep it undeveloped to maintain low tax bill on the property to local town. Principle advantage--no income or capital gains taxes until property is sold. Principle disadvantage--property taxes must be paid annually & lawmakers may pass legislation that wipe out the potential of the property as a wood lot.Don't know much about land but I would think this is a high risk option. Somebody will buy your stocks and bonds but their are very few who will but your land, espicaly if times are tough or there is a lot of land equal to yours.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<