plan for your kids' college tuition

Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.

Why Do Annuities Get Such A Bad Rap – And Is It Deserved?


Look at investment and wealth management advice, and you'll see information about stocks, mutual funds, 401(k)s, and more. But you might not see much about annuities, and it's not uncommon to see commentary about how annuities aren't what people should use to invest money. In some cases, the criticism has a basis; for example, you may hear people tout annuities as an alternative to the volatile and unpredictable stock market. Creating an annuity solely out of fright isn't the best way to invest, obviously. However, annuities offer benefits that could be perfect for you, depending on your wants and needs for ways to manage your money.

The Money Just Sits There

One of the reasons annuities sometimes are looked down upon is that the money just sits there. An annuity is an insurance contract, so you (or a broker) aren't wheeling and dealing, trying to buy and sell anything. If all you're trying to do is park some money in an investment vehicle and let the balance grow, however, an annuity is perfect. Many retirement funds have limits on contributions (e.g., the yearly contribution limit for a Roth IRA) or on sources (e.g., a 401(k) is funded through a specific job). If you sell your house or inherit money, for example, an annuity can be a nice way to make that money work for you, with minimal effort.

Some Types of Annuities Can Lose Money

Another issue is that, if you don't pay attention to the type of annuity you buy, you could lose money. Many annuities don't carry this risk, and you keep your money. But variable annuities and others do allow the loss of the original investment. If you want to place money in an annuity, look for either immediate annuities, deferred-income annuities, or any number of fixed annuities, among others.

Sometimes You Don't Need the Risk of Other Investments

One of the greatest reasons for using annuities to hold and earn money is that sometimes you don't need to take a risk with the amount you have. Forget stock market volatility; sometimes you just want to place the money somewhere relatively safe that doesn't require you to babysit what it does.

Annuities can be excellent additions to investment portfolios and safe places to place large sums that you don't want to leave in regular savings but that you also don't want to lock away in the stock market or another retirement fund. Speak with your financial advisor if you've received money that you'd like to place in an annuity.


3 December 2021