This may be a study in frustration. I didn’t find the site before I made a decision to annuitize 4 annuities amounting to some $400,000.00 because I am concerned about the stock market. I want to certain my grandchildren get the money I worked hard to accumulate
The annuities will be paid 10 years certain in an amount of $50,000.00 / 1 payment per year. the money has to invested. What do you consider a conservative approach (no treasuries)? Muni bonds,CD’s?.

Terry Says:   Whoa  — wait a minute!  You annuitized, leading to income taxes on the money paid out?  Now, you want to invest whatever is left for the benefit of your grandchildren?  Your frustration cost you a fortune!  With some good tax advice you might have made different decisions, depending on the options in the initial annuities!  I hope you live long enough to get the 10 year payout!  If it is too late to rescind this plan (you might want to ask!), then you are left to do traditional gifting to your grandchildren.

This time get some tax advice.  You could give $14,000 a year to each of them.  But if they are minors, you don’t give it to the children, or  their parents.  Instead you put it into a 529 college savings plan — check at the Vanguard website to open this type of account.  You need open only one account for each family, assuming you have grandchildren from two or more families.  Children from the same family can use the one account — unless you want to gift more, or make it clear that each child has her own account.

Just remember that you will have to pay ordinary income taxes on those withdrawals — and that income could lift you into a higher bracket for Medicare payments and other government benefits.  That’s why, if this was a recent decision, I suggest you ask if you have time to rescind it!

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