Any Vanguard recommendations for 84 year old woman?

[Anonymous]

My mother is in good help and rents an apartment. Has $250K to invest and obviously needs something very safe, yet can be a source of income. Right now, her only income is social security. Any ideas would be welcomed!

[Anonymous]

Have you considered a single premium annuity? On the downside you would inherit nothing, on the upside it maximize her income.

At that age I would be chary of too much investment in equities.

[Anonymous]

Anonymous wrote:Have you considered a single premium annuity? On the downside you would inherit nothing, on the upside it maximize her income.

At that age I would be chary of too much investment in equities.

I have never liked annuities. Thinking of VTINX Vanguard Target Retirement Fund. It is 70% bonds.

[Anonymous]

Good question OP! Wondering the same for my relative.

I was just looking into the Managed Payout fund at Vanguard. Not sure that would work for you (very heavy in stocks) but you don't need to worry about manually selling stocks to get income. Expense ratio is on the high side though.

Also considered annuities but afraid to pull the trigger as I don't know how they affect Medicaid eligibility (which my relative would need if a nursing home became necessary).

[Anonymous]

I would put maybe 30% in a dividend fund, the rest in Ibonds or something similar.

[Anonymous]

I wouldn't do an annuity right now - especially since interest rates are so low she will get a very low rate (payout). The cited Vanguard retirement funds are better choices. I would also try to change her mindset away from payouts/income to just regular withdrawals - have part of it be in a money market checking account at Vanguard. Typically, taxes are higher on dividends than capital gains.