Annuity or regular mutual fund?

[starnoga]

Being quite new to the (American) investing system I’d highly appreciate any advise: I’m looking to invest a sum of money. With retirement-target being the goal (am not planning on using this money anytime in the next 10-20years), I wonder if this is the right time to invest in a tax-deferred variable annuity. I know about the fee – but it’s tax deferred, and some of them will give you a bonus of 5-65 for joining at this time. (for 9 years). Would it make more sense to invest in a “regular” mutual fund? Or a combination? anything specific about Hartford Leaders?

Any advice would be highly appreciated.
Starnoga

[disneysteve]

I'd stay away from annuities due to the high fees. If you've got 20 years until retirement, now, when the market is getting hammered, is a great time to be getting in to equities with a long-term outlook.

[humandraydel]

I agree with Steve - stay AWAY from the annuity! I'd suggest investing in tax efficient index funds like Vanguard Total Stock Market Index (VTSMX).

[Ima saver]

Very good advice from both of the above. Stay away from annuities.

[nittany]

I second the Vanguard Total Market Index Fund. That is one of the best ways to invest in the total United States market.

[amarowsky]

I dont want to sound dumb, but what are those Annuities he talks about and what kind of fee's do u face from them?

[disneysteve]

I dont want to sound dumb, but what are those Annuities he talks about and what kind of fee's do u face from them?

It is never dumb to ask about what you don't know. That's how we all learn.

What's Wrong With Variable Annuities (Retirement: Personal Finance) at SmartMoney.com

Here is a good info site about variable annuities and why they are bad for the vast majority of investors.

[amarowsky]

It is never dumb to ask about what you don't know. That's how we all learn.

[u

Here is a good info site about variable annuities and why they are bad for the vast majority of investors.

Had to remove the link in the quote because i'm still too new to this forum. Ty a ton for the information though. I'm really glad you suggested that site because I just happened to order a 2 year subscription from smart money magazine roughly 3 weeks ago from reading your posts i value your input and suggestions.

Thanks again !

Oh and ill have plenty more questions in the "not to distant" future for ya