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Grandparent's Retirement


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Hi all,


My grandparents have moved into assisted living, sold the house, and are now trying to figure out a way to make ends meet.  Monthly income of $6000.  Monthly assisted living expenses of $7500.  We've got a $600,000 nest egg of theirs to work with and would love to make 4-5% a year.


Stipulations: No annuities.  We'd like to preserve as much of the lump sum as we can for health costs down the road.


Advice?  Do you have trusted advisors?




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I would start by making a full budget - not just the cost of assisted living, but all other expenses and taxes too. Then based on that, you have an annual withdrawal target from the portfolio. I'm guessing it will be around 5-6%? A little higher than recommended, but for most people it works out fine.


If they are comfortable with it, I would weight conservative, dividend paying stocks (either individually or in ETFs) a little heavier than bonds / cash. Most retirement financial advice emphasizing bonds is the product of an era when interest rates were substantially higher than they are now.

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