Question for my father

[cpn4388]

My father is 85 yrs old. I just learned this today. He has never invested his $$ and for whatever reason, now is wanting to put it somewhere other than his checking account.
Is there an annuity that would help at his age? He's looking at an Everbank savings account, currently advertising 5.05%

 

[DHK]

Everbank is FDIC insured, but that rate will fluctuate. It's certainly not bad.

Age 85 is often a cut-off age for life insurance and annuities, even age 80. Like everything "it depends."

I would think of MYGA (multi-year guaranteed annuities) that have a set interest rate for the term of the contract (3-4-5-7 years, etc.).

If he's in good health, a single premium life insurance policy may also be appropriate.

 

[Jackalope]

You might consider a 1-year or 2-year MYGA with liquidity riders.
I use American Savings Life (Mesa, AZ) that writes up to age 95 and pays you a full commission.
As of 01/01/2025, there 1-yr is 5.25% & 2-yr is 5.50%.
Their currently are in Arizona, Arkansas, Iowa, Kansas, Louisiana, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Texas, Utah, and Wisconsin.

 

[Life Hawk]

Single premium life is a good place.

Also some simple CD's.

The issue is his age, be careful you don't tie him up to tight... unless you are looking for was to tax shelter for future pass along.

 

[DonP]

Single premium life is a good place.

Also some simple CD's.

The issue is his age, be careful you don't tie him up to tight... unless you are looking for was to tax shelter for future pass along.

My dad did a 5 yr annuity at Symetra age 90 . It's to pass on to the grandkids and he didn't want to pay taxes yearly on a cd

 

[Life Hawk]

Always depends on the needs analysis. Always a case by case review, but as the client's becomes higher, even more so. IMHO

 

[adjusterjack]

How much money?

 

[annon123]

Be careful how you tie up his money if he doesn't have long term care insurance and ends up needing assisted living or a nursing home. Those are incredibly expensive and he may need to pull it from whatever you put it in to pay for that.