Should my 80-year-old father and 65-year-old mother transform the 687,000 dollar nest egg into an annuity? ‘I don’t think they understand how much they spend’

Reddit user He puts a question Hit many families to the house of many families trying to go to older parents Hit the HOTAM to a pension: Does it make an annuity?

The writing revealed all. The fathers are 80. The mother is 65. Where Investments have about $ 687,000 and about $ 69,000 in annual income of social security and pension. The user allowed to monitor the method of changing the method of changing interest from the portfolio every year. This would bring about $ 85,000 per year, which must pay for about $ 75,000.

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They were not completely convinced. “I don’t really trust it Understands how much they spend“Despite the modest of the pensioners, this was aware of this, especially for parents with a great age cavity, especially what they had many years old.” Yes, they will be allocated in six ways anyway.

This kind of honesty answered a large number. Some suggested that the VPW method can still work. Others rushed to attract annuity rates that they significantly rose to the middle of 2025. The joint lifetime annuities that offer more for older buyers several times have not paid more than 5% of fixed annuities, he said. This is where the mathematics began to be the item.

The original writing did not exactly specify what they think of converting, but the parents decided to enter $ 500,000 Annuity immediately immediately. On the basis of current market prices, between $ 2,2,200 per year, $ 2,500 per year or about $ 2,500 per year, about $ 28,000 per year, to $ 30,000 per year. This can go to $ 69,000 in social security and pension income, their total annual revenues will increase to $ 99,000 to $ 99,000.

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But when you commit to an annuity, this money is locked. There are no emergencies, unexpected medical expenses or any major disposable costs. If they choose inflation protection, monthly payments are gradually falling at the beginning. If they do not add special horsemen, there are usually no money left for the heirs. For retirees focused on guaranteed income and less decision on the day, it may be worth trading. But for others, the loss of elasticity – especially with a large set of savings – can feel like a very large victim.