Learn how to supplement your retirement plan

A: At your stage in the game, you should be looking to tax-efficient investing options such as annuities, as well as introducing yourself to the world of managed futures. Specifically, an annuity allows an investor to contribute to an insurance company money that will grow tax-deferred and be distributed back to the investor in several options throughout his or her retirement lifetime. Of the many benefits annuities offer, the most important is that an annuity accrues interest tax-deferred until withdrawal payments begin. Additionally, investors can customize annuities' features based on their own retirement goals.

As for managed futures, they are similar to mutual funds except they take long and short positions in futures contracts, government securities, and options on futures contracts. The benefits of these investments lie with their low correlation to traditional investments, so they offer reduced volatility and risk without a reduced rate of return.

Answers to our readers' questions were provided by Bryan Place, CFP, founder of Place Financial Advisors, Manlius, New York. Send your money management questions to memoney@advanstar.com (please include your regular postal address).