You can't save too much for retirement years. If you have maxed out your 401(k) and IRA accounts and have invested in the mutual funds and stocks you feel comfortable with, you might consider a variable annuity that allows you a choice of stocks and mutual funds. Annuities allow your money to grow tax-deferred until you start withdrawing it. A fixed annuity provides a fixed amount of income over a certain period. With a variable annuity, the monthly payments vary because they are based on the income received from stocks or other investments. A variable annuity has the possibility of growth to outpace the erosion power of inflation.

Unlike an IRA or 401(k) plan, there is no maximum amount that you are allowed to contribute to an annuity. Before deciding that an annuity is the best place for your money, investigate the cost. A "load" with an annuity refers to the surrender fee if you change your mind and bail out early. It can be expensive to get out of an annuity contract with an insurance company. It is less expensive if you select an annuity through a major mutual fund family. You can calculate whether you would be better off with or without an annuity by using a free software package from T. Rowe Price. Order it by calling 1-800-469-5304.