The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/annuities-tie-up-your-capital-charge-higher-20644876.aspx

Subject:  Re: index fund vs. annuity vs. deferred comp? Date:  4/16/2004  10:46 AM
Author:  buzman Number:  40533 of 96947

Annuities tie up your capital, charge higher fees, have fewer investment options, and you lose the preferential div/LTCG tax treatment.

Broad statement which is misleading. OP mentioned TIAA-CREF variable annuites, which for the most part are no-load and have zero surrender charges with very low fees. Plus they have guaranteed rate of 3% which is higher than any MMF I know of.

Any of these three would be good ideas. The Non-qual deferred comp is intriguing since the assets would grow tax deferred. Depending on your asset allocation, risk tolerances, and current cash requirements will dictate what is best.

buzman
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us