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URL:  http://boards.fool.com/rob-i-dont-want-you-to-misunderstand-what-i-21982363.aspx

Subject:  Re: New IRA Date:  1/28/2005  3:00 PM
Author:  investinginstuff Number:  44288 of 76418

Rob,

I don't want you to misunderstand what I said. There isn't a "charge" for tax deferral in an annuity. Rather, it is the way the annuity is structured. What you are paying for in an annuity is adminstrative fees, which can be quite high.

Most people should really only consider an annuity if they have maxed out their 401k plans, and IRAs. Once they have accomplished those two and taken care of any other obligations, an annuity may make sense.

Now, since you and your wife are still young (my age, LOL), you have a lot of time before you need to access your money. Even if you retire at 55, you still have 20 years in which to grow your assets. The best way to grow your assets over the long run is with stocks. I suggest you read Jeremy Siegel's "Stocks for the Long Run." Therefore, I would avoid anything fixed-income oriented. Although, they may reduce volatility, in the long run they will only drag down your returns.

JLP

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