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Retirement Discussions / Retirement
|Subject: Re: Retired Parent Looking to Invest||Date: 10/31/2011 10:19 PM|
|Author: Howie52||Number: 281 of 297|
"He gets by alright on his social security, but would like some more income to supplement this. He has no debts, so there is no need to pay anything off. I'm wondering what advice anyone can give about where he should place his money."
An immediate annuity will provide immediate income but the rate of
return right now would not likely be great. Low risk approach.
A deferred annuity does nothing for him at 75.
He might want to compare the return potential from the
insurance company stock to the annuity return if the insurance
company is a public company. Quite a few insurance companies have
good dividend yields.
A municipal bond - assuming he does not buy from Harrisburg,PA,
R.I., Illinois, or some other questionable actors - can be another
relatively low risk approach.
Corporate bonds also.
If the funds are not needed for 5 or more years, a dividend paying
stock has possibilities. But if health problems crop up as they
can at that age, the funds may not be there.
But you need to ask your father what he is comfortable with in
regards to the funds. Does he already have an emergency fund
set aside? If not, there may be a good reason to put the
money in a stable value fund - take a low rate of return and
have the funds available should something go amiss - may God
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