No. of Recommendations: 2
Any ideas?


As far as I can see, annuities are unlikely to work: poor place for a stock index fund, and you'd have to have a bond fund or individual bonds with a whole lot better return than the tax deferral of an EE bond or and I bond to be worth the restrictions.

You're probably young enough for EE bonds to beat CDs, especially if you're in a higher bracket than my estimates for 30% (about 18 years for EE bonds to win).

Stock Index funds are good for taxes. With tax advantages you wouldn't need to average much of a gain to beat bonds or cash.

Or, you could pay the tax man. I had a long chat with a new college grad yesterday, with $20,000 in debt, no job (except the cash register at the store), and no way to pay for further education. Seems to me raising taxes on Jack Grubman or Dick Chaney to keep the tuition increases down would go a lot further in stimulating economic growth than cutting dividend taxes in the hope of a quick short-lived) pop in the stock market in time for the next election.
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