Investing in Grandchildren's Future

Q: I would like to take advantage of your offer to answer our question free.

My husband has 7 grandchildren, ages 16-24, and is in the process of purchasing a $10,000 Fidelity Variable Annuity invested in Fidelity Freedom 2030 for each in their own names as their retirement account.

Is this the best way to invest for their future?

Looking forward to your professional advise as this is a timely matter.

A: It would provide tax deferral but wouldn't give them any flexibility of using the funds to pay for college, buy a home, etc. On the other hand, it may be that you are wanting it tied up. If that's the case, this isn't a bad option.

I'm wondering if there are options that could be tax-free...like an educational IRA or a 529. You might want to consider that before you make a final decision.

Your posted comments on this and other questions are welcome.
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