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How to deal with proceeds from house sale? Part 2?

closed part one by mistake! 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? Amount is $230,000. Only reason I'm thinking of annuities is the fact that the money would be sheltered from medi-cal, at least that's what I'm told

Public Comments

1. You need the services of a financial planner. Check with your bank to see if someone there can help you personally with this. Most banks offer many programs and options to fit the individual needs of your father. Don't punt on this - annuities are not always the answer, and most of the benefits from them end when your dad passes away, regardless of how much has been paid out. Meet with a financial planner at your bank, or ask your friends or business colleagues to recommend someone. Good luck and best wishes.
2. I would put $130k in an annuity and the rest in a money market account. The annuity would be protected, but you would also be earning about $300 a month in interest from the money market. Even if you invested some of the remaining $100k, he would still have a big chunk to pay his monthly bills and live comfortably.
3. Have you tried a "reverse mortgage"? It sounds like it could be helpful, at least consider what the options are. Edward Jones and Wells fargo both have incrediable annuities, money markets, bond,, and other type of tx sheltered. Also, an estate attorney can prepare the documents to best meet the customers needs for medicare regulations, Give them a call maybe it will help, good look to you