Pete asked: My father just sold his home and moved into a retirement home.
He needs about $3,500 per month. He receives $900 in social security so he would need to draw out $2,600 per month.
He just received a small 6 figure amount from the house sale. His only asset and hopes to live at least 5 years at the care home (he is 85).
What do I do with that money? just put it into CD’s or buy an annuity?
I’m being told by one company that I should put it all in an annuity that will pay him the $2,600 but would not earn any interest.
The benefit would be that if his health declined and he was placed in a nursing home, that money would be protected for his heirs and he would use medi-cal for the nursing home.
I just want to stick it in the bank, earn him some interest and hope he stays healthy until it runs out.
What to do?
Thanks
LAWRENCE