Anuities
Anuities
my 82 year old mother, that lives in wisconsin, just sold her home and has $200,000 to invest for an income?
stream. anuities? bonds? she would like to leave it to hiers, also.
I can give an opinion but I must caution that it is only an opinion. $100,000 in 6-mo t-bills. This will provide a current income of about $5000. Unfortunately, it is not a lot but the capital is relatively safe. And the income generated is comprable to that generated with longer term bonds currently.
The other $100,000 in an equity income fund such as
T Rowe Price equity income fund There is some risk to this portion of the portfolio but the stocks that fund invests in are of a conservative nature. The fund will pay capital gains distributions once or twice a year. Consequently, the dividend stream will be somewhat eratic, which is unfortunate. Although the average return of this fund has been about 10% annually over the last 10 years, it has varied greatly from year to year from about a +28% to a -10%. For an equity based fund, that is not a bad variance. Actually, shares of the fund can be redeemed as money is needed to smooth out the income stream.
So currently there would be an expected income stream of about $15000 a year more or less.
GCU Flex 10
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