If I place the maximum contribution in my IRA should I consider an annuity to increase my retirement savings?

Public Comments

1. yes I would keep a Money market account open with at least 6 months pay in case you are laid off, because it has liquidity, but if you aren't laid off its always available in emergencies
2. consider investing, yes an annuity? doubtful. insurance companies pay their salespeople well to sell annuities because they don't sell well on their own in a standup contest against mutual funds. there's something about poor returns and high costs that turns investors off.
3. Annuities are notorious for high fees and low returns. Consider "tax-efficient" mutual funds or perhaps bonds (treasuries, TIPS, etc.).
4. I would not consider an annuity. This is only a method Insurance companies use to make large commissions. We recently inherited a large sum of money from my big brother. I had little investment knowledge, so I took the advice of the financial planner at our bank, she recommended CD"s and Annuities. The CD's are fine, but the annuity did nothing but fatten her wallet. It was gauranteed an interest rate of 7% the first year, then it came down to about 4.5% . Don't do it ! Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan. Go to : low-cost-stock-recommendations .com Click on the "DRIP's" Button on the Navigation Bar These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street. They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor. If you decide you are interested in DRIP Plans, click on the advertisement on the same page "$4 to purchase stocks". This will answer your next question, which is, How do I get started? and what is the least expensive way to get started? I strongly recommend looking into it. They are great plans. Good Luck