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Investing/Strategies / Retirement Investing
|Subject: Variable Annuity vs Bond Fund||Date: 10/5/1999 4:31 PM|
|Author: jsalemi||Number: 14246 of 75540|
My mom (76 years old) is getting ready to sell her house, and I need some advice on how best to invest the profit she makes on it so that she gets a monthly income to suppliment her Social Security.
I expect the profit to be at least $110,000, and we estimate she'll need about $600/mo income. We're looking for something I can just setup and not worry about as it sent her monthly checks for the next 7-10 years.
I had originally thought about putting the bulk of the money in a Vanguard bond fund (or a bond fund/money market mix) and setting it up to automatically transfer money to her checking account each month (reinvesting dividends, of course).
Then I poked around on the Vanguard web site, and started reading about variable annuities. It seems an annuity may be be better for her situation, as it would be very low-maintenance, and would also guarantee her an income as long as she lives.
Any thoughts or advice?
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