Recommendations requested for an annual income strategy for my Sister-In-Law

[mebden]

Well Aj all I can say is good luck and everything works out for the SIL and I guess I'm lucky I'm on my 5th house in 3 different states so no real sentiment value in any of them except living in them for a few years each. Oh, forgot having to live thru a category 4.5 hurricane in this current place so no sentiment value but something I'll never forget lol, and when this one sells I'm not sure if I will ever buy again or not but definetly not in this state.

 

[aja8888]

Well Aj all I can say is good luck and everything works out for the SIL and I guess I'm lucky I'm on my 5th house in 3 different states so no real sentiment value in any of them except living in them for a few years each. Oh, forgot having to live thru a category 4.5 hurricane in this current place so no sentiment value but something I'll never forget lol, and when this one sells I'm not sure if I will ever buy again or not but definetly not in this state.

Thanks!

I've gone through 7 or so houses in my life and never really had any sentimental feeling for any of them and a few were quite nice. Now that I am a widower, I don't even care much about the "stuff" I own.

 

[Teacher Terry]

Thanks!

I've gone through 7 or so houses in my life and never really had any sentimental feeling for any of them and a few were quite nice. Now that I am a widower, I don't even care much about the "stuff" I own.

I have owned 10 properties. My favorite is a 3 story house plus a basement in Wisconsin that was built in 1920. I raised my kids there and we all loved the house. We put a ton of work in it doing it ourselves through 14 years which is the longest I’ve lived in a house. It’s definitely not the nicest house out of those we owned but it was definitely my favorite.

 

[Buckeye]

If I can get past the mention of the work "stock" with her, I'll give it a try.

Her problem wasn't with stock, it was with stockbrokers!

 

[Running_Man]

I am going to go with the same answer I had on the other annuity thread for someone in this boat. According to Fidelity she can use 200K to get an annuity of $18,456 annually.
1) Convert to annuity and take $12,000 annually for house
2) Increase spend by 3 percent each year
3) Invest difference $6,456 in year one 100% in VTI
4) Additions to VTI slowly decline over time to age 90 when the portfolio which should be at $135,000 would need withdrawals.
5) if instead a 4% step up the portfolio would be $105,000 at age 90 and last to age 100. Stock Portfolio withdrawals with 4% step up would not be needed until age 87 so I think she would be good, it is conservative and gives stock exposure with no income hit and a secure inflation protection provider, not fool proof but pretty darn good.
6) at 5% annual increase the portfolio would provide income to match an annual increase of 5% to age 95, then would drop 40% to the 18K annual annuity payout . Portfolio maxes out at age 90 at 90K.
7) This is simple to set up with a broker to distribute the monthly cash and invest monthly savings in VTI.

 

[aja8888]

I am going to go with the same answer I had on the other annuity thread for someone in this boat. According to Fidelity she can use 200K to get an annuity of $18,456 annually.
1) Convert to annuity and take $12,000 annually for house
2) Increase spend by 3 percent each year
3) Invest difference $6,456 in year one 100% in VTI
4) Additions to VTI slowly decline over time to age 90 when the portfolio which should be at $135,000 would need withdrawals.
5) if instead a 4% step up the portfolio would be $105,000 at age 90 and last to age 100. Stock Portfolio withdrawals with 4% step up would not be needed until age 87 so I think she would be good, it is conservative and gives stock exposure with no income hit and a secure inflation protection provider, not fool proof but pretty darn good.
6) at 5% annual increase the portfolio would provide income to match an annual increase of 5% to age 95, then would drop 40% to the 18K annual annuity payout . Portfolio maxes out at age 90 at 90K.
7) This is simple to set up with a broker to distribute the monthly cash and invest monthly savings in VTI.

Thanks!