UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: jsalemi Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Variable Annuity vs Bond Fund Date: 10/5/1999 4:31 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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?

Thanks!
---joe
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Berkshire Hathaway

Starting a Small Business
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement