My father is retired, 75 years old and in good health. He had some money that he came into that he wanted to invest (around $25000), but he's not much of an investor. He had been hoping to put that money in a policy that he had with his insurance company, but the agent came and was trying to talk him into buying either a deferred or an immediate annuity. He doesn't know what to do and I'm not sure that an annuity would be the best course for him.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. He's never done a good job about getting his assets in order, but he says that he has upwards of $100,000 available to invest. Outside of a good alternative that is simple enough for him to follow, I think he'll end up going with whatever the insurance agent recommends for him.Any advice is greatly appreciated.
"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 ofreturn 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 theinsurance company stock to the annuity return if the insurancecompany is a public company. Quite a few insurance companies havegood dividend yields.A municipal bond - assuming he does not buy from Harrisburg,PA,R.I., Illinois, or some other questionable actors - can be anotherrelatively low risk approach. Corporate bonds also.If the funds are not needed for 5 or more years, a dividend payingstock has possibilities. But if health problems crop up as theycan at that age, the funds may not be there.But you need to ask your father what he is comfortable with inregards to the funds. Does he already have an emergency fundset aside? If not, there may be a good reason to put themoney in a stable value fund - take a low rate of return andhave the funds available should something go amiss - may Godforbid.Howie52
Thanks for posting this info.It appears that he is more interested in a simple way to get a steady paycheck to supplement social security. I think he's paying more for it than it's worth, but it's his money, so I guess he'll be getting an annuity anyway.
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