Planning for Retirement

 

Unfortunately, the fees for this type of product are some-times very high . . . very high. Furthermore, the distribu-tions from deferred annuities are taxed as ordinary income, which for most of us is a higher rate than the capital-gains rate we would pay on a regular mutual fund. In most cases, it would take a pretty long period of tax-deferred compounding in order to make up for the higher costs and taxes.

"Always remember our golden rule: Choose the least painful alternative available!

"My parting comment," Roy said, to Tom's evident re-lief, "is that you three have come a long way. You're asking intelligent questions. You're applying what you're learning. You're on your way to becoming very wealthy. Congratulations!"

Cathy acted as our spokesperson. "We owe it all to you, Roy. We can't thank you enough."

"Well, as a matter of fact, you can," Roy informed us, as we paid for our long-since-completed haircuts. "Give me your tickets for tomorrow's Tigers game."

"No way!" Tom roared. "Nothing's worth that much! But you'll be our first guest when we get season tickets a few years from now."