No. of Recommendations: 0
Sometimes a toxic chemical turns out to be just the dose of medicine that is needed for a special situation.

Except for some immediate annuities, annuities in general are pretty much the toxic cesspool of the investing world. But once in a blue moon a carefully selected one can be a good choice for a special situation where the tax advantages for a high income person outweigh all the negatives and can make them a good choice.

The annuities and taxes are so complex that you would need to use a trustworthy fee only financial advisor who charges by the hour to evaluate your situation and recommend if an annuity might be a good choice in your situation. Ask if you do not know how dangerous using the wrong type of financial advisor can be.

This is just a recommendation of something to look into; it may or may not turn out to be appropriate for you.

You should also look through you latest tax return to see if you have much non-wage income and see if these can be reduced by changing your investments to use more tax effecient choices, or have the income generating investments in retirement accounts.

If you are eligible for flexible spending accounts or HSA's at work then using these aggressively can save you some taxes too but you need to understand the details of how they work.

When you do get ready to fully retire, retiring half way through a tax year will leave you in a lower tax bracket for that year.

Greg
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