Hi -Here is my situation-38 years old, married, no children and no plans for them-Both my spouse and I have fully funded out 401(k)'s and our IRA's.- Our income level is high enough to exclude us from Roth IRA's- I have about $400K in after tax money as a result of diligent savings and a small inheritance- We are saving/investing about $600-$700/monthly after tax.- We have a mortgage balance of about $275K. Fixed rate @ 7% for two more years, then variable annually tied to the Cost of Funds Index.I'm wondering if a variable annuity might be a good place to put some of the after tax money? Although fees are pretty high (Vanguard offers a relativly low fee flavor), at least it eliminates some of the annual tax bite I face now.Taxes are a major problem - all our income come directly from two employers and as such is reported directly to IRS - no place to shield their prying eyes. Same with dividends and capital gains from the after-tax investments. Definitely at 31% or higher each year.Another question - should I just pay off the mortgage or is that money better kept invested. FYI - the house is located in a current "hot" real estate market (Raleigh-Durham NC) and has appreciated approx. 6% annually for the last few years)I know annuities are generally frowned upon by the Foolish crowd for their fees, but do you think my situation might be what they are best suited for?- mclaus
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