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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Are you thinking of just having an UTMA brokerage account or an actual annuity?  Personally I'd stay far away from an annuity (and it's worth thinking about how you'll. deal with things once the kid is of age and it becomes their property ). [/quote]

OP here - I am thinking actual annuity account. My kids are older than PP's kid - late teen/slightly over 20 - and they have proven, so far anyway, they are growing up to be responsible adults. They saved us a lot of money by not insisting on 60k/year colleges and this is our way to say "thanks kids." [/quote]

I don't see why you'd use an annuity-- just a lot of fees and black box crap.  Your kids are probably not in a high tax bracket so they don't even benefit that much from the tax deferral. [b]You are better off with a low cost index fund, or maybe a balanced fund.[/b]   Just have a discussion with them that you are gifting them the money and plans for investing it. [/quote]

I was concerned kids may get tempted to cash in before it's time - to buy first home, wedding, or whatever.

https://www.fidelity.com/annuities/FPRA-variable-annuity/overview

0.25% fee for Fidelity doesn't sound too bad. [/quote]

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