No. of Recommendations: 2
A big problem with annuities is that they can be bought and sold, and there are people who put pressure on you to sell you your annuity at a weak moment. Your mother is 71 -- too young to know yet if she will be affected by Alzheimer's or another form of dementia. Can you find a way to make sure she cannot sign the annuity away too easily? My mother is trying to find a way that she can tie up her paperwork, such that she has to get a physical to check for signs of dementia, confusion, etc. before any of her wills or other financial documents are changed. It may seem extreme, but having seen so many older women get cheated, she is feeling very cautious.

A friend of mine, awarded a lifetime annuity in her thirties, sold it after a year to pay for a crack habit. The money was soon gone. Her lawyer had tried to tie up the money, knowing of her issues, but ultimately she got around it.

This has been my main problem with annuities -- you think you have a lifetime income and then someone gets it away from you. If she does decide to go this route, can you talk frankly to her about issues that other people have experienced in this area or would she be offended? Unfortunately, when my mother tried to talk frankly with a friend who was scammed, the friend cut her off. Later, the friend was indeed diagnozed with Alzheimer's, and my mother has been assisting her friend's attorney in getting some of the money back from the con artists, but they will never get everything back.

I don't know much about the expenses, but I'm confident some of the other excellent posters here can help you with that.
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