In addition, index funds minimize capital gains distributions because they don't engage in much selling. And you might want to check out taxable funds whose investment strategies are to minimize investors' tax liabilities. As you change your portfolio allocation over time, try to minimize the extent of capital gains realization from the rebalancing. It's generally more tax-effective to adjust your asset allocation by adding new contributions to a lagging investment, rather than selling an appreciated asset. But you have to meet certain income limitations.
Annuities offer another tax-reducing alternative, at least until funds are withdrawn.
But fees and loads may be high. In contrast, TIAA and CREF annuities are among the lowest cost compared with most mutual funds and other annuities. Where to find information about costs Investors in mutual funds or variable annuities must each year be sent a prospectus, a legally required document that throws a spotlight on a lot of significant information.