<prompt> Human: My 5 year-old daughter is receiving a settlement for an injury she suffered not too long ago. I cant provide specific numbers for fear of violating a confidentiality clause, but I think just some general advice would help out a lot.Basically, her trust will be divided between an annuity with a fixed rate of return of around 3, and a special needs trust to be invested as a trustee and I see fit. We were ready to set all of this up when I learned that any of the trustees that I wanted to work with required a higher minimum amount in the trust. Also, many trustees and financial advisors I spoke to told me that now is not a great time to get locked into an annuity. We will not be able to shut down the annuity at this point, but I am faced with the choice of moving money from the fixed rate non-taxable annuity account to a variable and taxable special needs trust to facilitate using a preferred trustee.If I move the funds from the annuity, the rate decreases, but not by much. It will still be about 3. As a hypothetical, Id like to assume that the amount in consideration is about 60,000 to 80,000. We are hopeful that the money in the trust will be able to be invested as a long term investment 10-20 years without having to draw on it for any needs my daughter might have. The annuity is set to start paying out within a similar time period.Should I move the money to the trust and hope that the investment surpasses the fixed and guaranteed income from the annuity? Even with the tax considerations?I would like to make the best possible choice for my daughter, understanding that making any investment comes with risk. Any insight from this group would be greatly appreciated.  <response>: Firstly, is the settlement intended to pay for ongoing costs related to the injury or are you simply investing it in her best interests?If it is the former, the question is what those needs are likely to be over the course of her life. If a secure income is needed, then the annuity is the best choice, regardless of the value. Yes, interest rates are low at the moment, but they will not rise for many years, and in the meantime longevity will drive rates down as well. I dont think its in yourher long term interests to try and work around this. If I understand you correctly, the annuity is deferred, so it will not start paying out until some years down the line? Does it then run for her whole life, or for a fixed term?What was the rationale for trustees wanting to see more money invested outside the annuity? 