Thinking of a recommendation for in-laws before they do something stupid.
They will have roughly 300k-400k for retirement to help supplement their SS. Note this 300k-400k will be coming from the sale of their home. Post tax it may be less.
I am currently thinking of the following split to help give them additional income to supplement their SS monthly as well as a chance for some growth and inflation protection.
Hoping they would agree to the following (based on a liquid 300k worth post sale of home):
- 50% in a SPIA -- I estimate this at roughly $1000 a month, they are both 70 years old and do not plan to leave any money to their heirs
- 25% in TIPS
- 25% in VTSAX
Their SS + small pension will add up to ~4k a month so with the SPIA we can estimate 5k a month or 60k a year. Their spend will include renting a home in a MCOL area.
It will not be a glorious retirement but it is better than them wasting this nest egg on either a shady product they heard about on the radio or attempting to buy properties in Belize to Airbnb for profit (these are the current plans).