Best Place to Invest 200k at 60 Yrs Old with No Experience and No More Income

[cusymers]

Hi! I am desperately trying to help my mom invest in something (passive and hands off) that will keep her afloat from now until forever. She recently sold her house and after all is said and done she has around 200k to invest. In full disclosure - she is not responsible with money and doesn't care to understand how it works, so something she cannot touch is a necessity. She wants to invest somewhere and draw a small income from it for the next 25-30 yrs. Her monthly bills are low so the income does not have to be much. Is Vanguard the answer, and does anyone know which funds specifically? I recently invested in some index funds but my investments are more risky than she can afford at 60. Thanks in advance to anyone reading - all feedback is much appreciated.

[El Marinero]

I'm coming from the perspective of helping my elderly parents with their finances. I think I understand  the  "not responsible with money" part.

I'd consider whether an annuity might be appropriate.  That check just keeps coming month after month, and once it is set up to deposit automatically, there is nothing else to do.

[cusymers]

Thanks El Marinero - glad I'm not alone (sometimes it feels that way...)

I'll look into an annuity for her. Appreciate your help =)

[Financial.Velociraptor]

Second the annuity.  That is what we did for my father.

[Another Reader]

Both Vanguard and Fidelity sell low cost annuities and have tools that will allow you to comparison shop.  Most annuities bought from insurance companies are high fee, high commission products.

[El Marinero]

Another Reader is spot on. The big problem with annuities is shopping for one.  Get several quotes first.

[MDM]

She wants to invest somewhere and draw a small income from it for the next 25-30 yrs.

How small is small?  E.g., at a 4% withdrawal rate she would take $8,000/yr (rising with inflation).

One of these funds: https://investor.vanguard.com/mutual-funds/lifestrategy/#/ might work if the annuity route is not fruitful.

[OkieStache]

I don't know what her other assets/income might be, but if she has a favorite charity a charitable gift annuity would pay her about $8,800 a year (typically no fees or costs) and since she gets a huge tax break, the taxable portion would be less than $3k.  Food for thought.  Best of luck to you and your Mom!

[cusmyers]

Thanks everyone - all great advice. Feeling more confident already...

[Frugalman19]

I manage my mothers money, she turns 60 tomorrow. I opened an account for her at vanguard and just investing in growth and income type funds. It's only $80,000 but it's all she has left, she blew through $300k of inheritance in 9 months. she knows nothing about finances so I just told her that she cannot access the funds until she retires. Its worked really well.

[GGNoob]

My favorite Vanguard fund for older people looking for income is the Vanguard Wellesley Income Fund Admiral Shares (VWIAX). It's about 1/3 stock and 2/3 bonds.

Another option could be Betterment's Retirement Income that can auto withdraw money each month and tells you how much you should safely be able to withdraw. https://www.betterment.com/retirement-income/

Just tossing some ideas out that I haven't seen mentioned yet.