A friend has a relative who can be a bit of a spendthrift, and is not good at managing money. He wants her to be secure, and have a lifetime stream of income, inflation adjusted, so that she will always have a base amount of money to live on. [He may pay off her mortgage as well, but that carries its own risks ... she could mortgage the home again.]
More specifics about her: age 50, two boys (15 and 23), she has zero net worth, working at a $28K annual salary job, high school education only. Toughing life out as best she can. Very honest, very hard working, very caring and decent lady, but no financial prospects, and little likelihood of getting that college education in her current situation.
While lifetime annuities may not make sense for the sophisticated investors on this board, what about a situation like this, where you want it to be on autopilot? An irrevocable trust might make sense as well, but more complicated, and then you have to worry about the future actions of a trustee.
If this doesn't make sense, what would you recommend? [Teaching her to manage money is not an option.] If this does make some sense to you, which company / program for the annuity?
Thanks.
More specifics about her: age 50, two boys (15 and 23), she has zero net worth, working at a $28K annual salary job, high school education only. Toughing life out as best she can. Very honest, very hard working, very caring and decent lady, but no financial prospects, and little likelihood of getting that college education in her current situation.
While lifetime annuities may not make sense for the sophisticated investors on this board, what about a situation like this, where you want it to be on autopilot? An irrevocable trust might make sense as well, but more complicated, and then you have to worry about the future actions of a trustee.
If this doesn't make sense, what would you recommend? [Teaching her to manage money is not an option.] If this does make some sense to you, which company / program for the annuity?
Thanks.
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