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Ask Dave

Tips For Retirement Investments?

Chris asks about what the different investment options mean.

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:

  1. 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.
  2. 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.
  3. 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.