With very few exceptions, annuities are a bad idea. You can put after-tax money into growth stocks that don't pay dividends and simply buy and hold. No tax consequences until you sell, and that can be decades away. Once you reach retirement age, a problem with the large IRA is getting the money out. If you put before-tax money in, then Uncle Sam wants his due--and your required distributions can amount to lots of tax. You probably don't have a huge income now, so paying the tax now is probably at a better rate than you'll be paying, say 20 years from now. If you REALLY want an annuity, look at Vanguard and TIAA-CREF, but you are really better off with just buy and hold. You can even give appreciated shares to your favorite charity and avoid the tax on the appreciation. Yes, contribute the maximum to your and your wife's IRA and your child's ESA, but then you really do better to just pay your taxes, focusing on whether you are making an investment that will earn you money rather than on whether you'll owe some tax on April 15. Best wishes, Chris
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