My D and SIL are frugal and have relatively high income for their age (early-mid 30s) and are looking for ideas on what to do with savings for retirement beyond what they can put in qualified plans, which they are maxing out. They could figure this out themselves, or course, but since they are both pretty busy, and they realize this gives me something to do, they are happy to have me do the legwork for them
I recall seeing other posts regarding the same subject, and if I remember correctly, one tactic suggested was to put tax efficient investments in an after tax account and buy a low cost variable annuity for non-tax efficient investments (r.g. REITs and high yield bond funds). I've looked at Fidelity (where we all have our money since my wife worked there for a number of years), and they have a variable annuity with a cost of about .26% with REIT and HY bond funds available, and no asset allocation rewuirements. Including fund fees, looks like the all in cost is about 1% which seems reasonable for tax deferral for a couple with high income for their ages.
Does this make sense? Any other suggestions? I assume index funds would be the most tax efficient investments for the equities portion. Is that correct?
Jeff in Tennessee