No. of Recommendations: 14
You don't need the money now or any time soon. And your daughter doesn't need it now or any time soon.

So why do you care if the invested money goes up and down a bit (or a lot) with the market? If it is invested in the broad market and goes down, it will also come back up when the market comes back.

Annuities like this are sold on fear - your fear of the value going down for some unknown period of time. But the market has always recovered. The market drop in 2008/2009 was one of the worst in the last century. But here we are 10 years later and we are above the level we were before that drop.

Put the money in a low cost, broad market index fund, reinvest the dividends (except for what the trust will need to pay taxes on the dividends), and let the market do it's thing. Your daughter will come out way ahead of the annuity.

--Peter
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.