Tax-Differed Annuity, 100k at 19

[correia]

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What is the minimum opening amount for one of these?


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Depends on the company, most are 10k some are 5k

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Do you think this is a good or bad idea?


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As others have said, the rate of return is low compared to other investment options.

[ebranig]

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I see no reason to lock up money until you are 60.. If you want to be safe just buy some shorter-term bonds/ CD's. You can re-evaluate what to do with the money after these mature. Locking up money for 41 years is just a waste unless you can get some rediculously high return that they obvoiusly aren't offering.

Also, statistically speaking theres a significant chance you'll kick the bucket before 60, in which case you'd be giving the money to i guess family members. But you would have no direct benefit from it. You might want this to be the case, just something to consider in case you want to make sure you control/see where the money goes instead of locking it up.

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This nonsense must be corrected.

1. When you are young and investing for retirement you should invest in speculative, high-risk investments like stocks and mutual funds. Fixed-income investing is for short-term investment when you at or near retirement or close to needing the money (house, college, etc.)

2. A roth IRA is not "locking" up your money. You can always withdraw the principal interest-free. You can withdraw everything under various circumstances like when you buy your first house, to finance education (for yourself or kids), for a medical emergency, and other uses.

11111, you're basically wrong on all counts.

[ebranig]

OP,

Investing this amount of money in an annuity is about the worst possible thing you can do.

Buy up some vanguard index funds, or more simply, buy up a vanguard lifecycle index fund. Simple, easy, sweet.