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My question is does investing in a vaiable annuity make sense for me given the following.....

My wife and I are well into 35% marginal income tax bracket. We are both both salaried employees with good retirement plans. She is maxing out with 45K into her 401k/profit sharing plan annually. I am maxing out my 403b and 457 contributions - with empoyer match it is 60K annually. Thus far I have been using a taxable account with a combination of individual stocks and mutuals funds for additional savings.

I just hate that I lose 35 cents on every dollar to taxes before I can invest it in my regular brokerage account. Would using a taxed defered variable annuity make sense for additional retirement savings or are we better off simply paying the taxes upfront and capital gains down the road? These funds would strictly be for retirement and would not be needed for 15-20 years.

Any input would be greatly appreciated.
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