Annuities And Different Retirement Investments.
Dave gives Chris three options for long-term investments, if he has no debt and has maxed out his retirement accounts.
QUESTION: Chris wants to know about annuities and different retirement investment vehicles.
ANSWER: If you’re investing long term, have maxed out all of your retirement accounts, and have no debt, do the following:
- Buy things that appreciate on a capital gains basis like real estate. You can buy rental property that goes up in value and it grows tax-deferred.
- You could also do annuities. There are fixed annuities and variable annuities. I would not do fixed annuities because they are a bad savings account with an insurance company. A variable annuity gives you some access to mutual funds and allows them to grow without paying taxes on them.
- You could also do low turn-over, index mutual funds. Stocks don’t sell inside the mutual fund very often so you can keep clear of taxes.