Quote:
Originally Posted by Amnorix
So annuities are definitely a thing. Unfortunately, they're not a thing I'm terribly familiar with. They are generally offered by insurance companies. It's basically a mathematical computation to them -- you give them X, and based on your life expectancy etc. they will pay you Y dollars per month, every month, until you die.
At 67 if in reasonable health he should be looking to support himself for maybe 20 years. His biggest likely costs are health-related and housing, if anything happens to that sweet essentially no-rent situation he has. He presumably has Medicaid/Medicare (programs I am not familiar with), but may want to look into supplemental insurance (sometimes call Medigap) for the things Medicare won't pay for.
As to staying in the market or not -- for his anticipated life expectancy, he should be in the market to some degree, though obviously with a focus on capital preservation and income generation rather than the straight growth I'm often promoting on here for people who have 20+ years of anticipated work-life in front of them.
Hope that helps.
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Thanks for the advice. I appreciate it. I just wanted to make sure he wasn't being taken for a ride by some commission hungry college grad working for Edward Jones. He's reluctant to go the annuity route because he feels some moral/paternal obligation to "leave me something" when he's gone (I'm an only child). I keep telling him not to worry about it because I have a 401k and a pension, but he's old fashioned. I just want him to be able to be comfortable aka pay his bills & have a little left over for recreation/fun/travel/etc.