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Buddy_Christ
New member
Assets - somewhere in the low $100K range
Income - around $16K/year
Expenses - known $28-29, add additional $10K to be save, so $38K/year
Grandmother will be 84 in September and is in relatively good health. i need to try to make her money last as long as i can. if her assets were in the $200K range, i know she'd be a lot better off, but we got to work with what we have.
Sat down with a financial advisor today and explained the situation. He started off with Mutual Funds. while the return on investment is nice, the risk of losing is there as well, and that's something i'm not sure if i want to chance. granted i could go this route and go with some lower interest/lower risk mutual fund investments to lower the risk, but i'm not sure if it's worth doing.
So we moved along to Annuities. the Fixed Annuity he presented to me was not a possiblity. It was based on a 7 year time frame, with a max of 15% withdrawl/year on the current balance. considering that she will need anywhere from $15-22K/year, sometime after the first year we'd run into charges for overdrawing that 15%, and most likely end up paying penalties for ending the contract early. not a good idea.
Next up was the Immediate Income Annuity. This is a 10 year deal, which payout per month wise wouldn't be very good considering what she needs. however, he explained to me that if i went with this Annuity, the money paid out to her every month would be considered an income, not an asset. This would enable her to apply for and recieve financial aid to stay in the assisted living home she's currently in, but i'm not sure if i want to go that route.
The third thing presented was called an Immediate Care Annuity. This is more along the lines of an insurance policy. Her medical history needs to be turned over to be reviewed by an underwriter, who would then determine her life expectancy. The interest would be calculated, and every month, a check woudl be sent directly to the long term care facility she was living in. Any difference between that and the monthly fees would have to be paid either from her income or picked up by financial aid. if this annuity comes up with a payout very close to or right at what the monthly fees are for her long term care facility, then this seems like it would be my best bet for securing her future financially.
Also, all these annuities are 100% gaurenteed and there is a benificiary clause.
i'm very unknowledgable when it comes to these things. i really don't even know where to start, thus the reason i started with my bank. plus i live in a shitty area, so there's no major investment firms anywhere near me. i would have to make at least an hour drive to get anywhere that would have larger investment firms.
i'd like to hear some opinions on these investments and, if possible, any other annuities with different time frames or even different investments. thank you.
Income - around $16K/year
Expenses - known $28-29, add additional $10K to be save, so $38K/year
Grandmother will be 84 in September and is in relatively good health. i need to try to make her money last as long as i can. if her assets were in the $200K range, i know she'd be a lot better off, but we got to work with what we have.
Sat down with a financial advisor today and explained the situation. He started off with Mutual Funds. while the return on investment is nice, the risk of losing is there as well, and that's something i'm not sure if i want to chance. granted i could go this route and go with some lower interest/lower risk mutual fund investments to lower the risk, but i'm not sure if it's worth doing.
So we moved along to Annuities. the Fixed Annuity he presented to me was not a possiblity. It was based on a 7 year time frame, with a max of 15% withdrawl/year on the current balance. considering that she will need anywhere from $15-22K/year, sometime after the first year we'd run into charges for overdrawing that 15%, and most likely end up paying penalties for ending the contract early. not a good idea.
Next up was the Immediate Income Annuity. This is a 10 year deal, which payout per month wise wouldn't be very good considering what she needs. however, he explained to me that if i went with this Annuity, the money paid out to her every month would be considered an income, not an asset. This would enable her to apply for and recieve financial aid to stay in the assisted living home she's currently in, but i'm not sure if i want to go that route.
The third thing presented was called an Immediate Care Annuity. This is more along the lines of an insurance policy. Her medical history needs to be turned over to be reviewed by an underwriter, who would then determine her life expectancy. The interest would be calculated, and every month, a check woudl be sent directly to the long term care facility she was living in. Any difference between that and the monthly fees would have to be paid either from her income or picked up by financial aid. if this annuity comes up with a payout very close to or right at what the monthly fees are for her long term care facility, then this seems like it would be my best bet for securing her future financially.
Also, all these annuities are 100% gaurenteed and there is a benificiary clause.
i'm very unknowledgable when it comes to these things. i really don't even know where to start, thus the reason i started with my bank. plus i live in a shitty area, so there's no major investment firms anywhere near me. i would have to make at least an hour drive to get anywhere that would have larger investment firms.
i'd like to hear some opinions on these investments and, if possible, any other annuities with different time frames or even different investments. thank you.
