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At 7% they unfortunately will not cover my Dad's expenses.

Please don't think I am crass, but how long can you expect your Dad to live? At 83 years old, I don't think it's a bad thing to use some of the principal. The answer, of course, depends on how much money he has and what his expenses are. But it really doesn't have to last indefinitely - 10 years? 15 years? I don't think you can realistically count on a steady investment return much more than 7%. If you have equities, you won't have a steady return. Again, this may be fine, but you have to evaluate his circumstances. My inclination would be to find a mix of bonds, steady stocks with dividends, and a small part in growth stocks - maybe investing in a "balanced" mutual fund.
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