You can get a single premium immediate annuity 20 year certain of $5400/mo from MetLife for his $1mm. If you look around you might do better--that was the ultra quick google result.
He could get a lifetime SPIA $4910/mo with a $1,000,000 investment assuming he's 60 now.
That's probably your best bet.
Huh. I never considered an annuity because I think my brain just automatically classifies them as a scam. On Fidelity's Guaranteed Income Estimator, there are varying options, but the various 6k a month options are the following, where the second column is the minimum payout.
$1,083,564 $0 Life-only: No death benefit.
$1,114,699 $720,000 Life with guarantee period (10 years): Income payment guaranteed for 10 years from income start date. Details
$1,219,960 $1,440,000 Life with guarantee period (20 years): Income payments guaranteed for 20 years from income start date. Details
$1,191,468 $1,191,468 Life with cash refund: Lump-sum payment of original investment less income payments made to date.
With a 2%/year inflation adjustment, the table looks like
$1,353,840 $0 Life-only: No death benefit. Details
$1,389,120 $788,380 Life with guarantee period (10 years): Income payment guaranteed for 10 years from income start date. Details
Not available * - Life with guarantee period (20 years): Income payments guaranteed for 20 years from income start date. Details
$1,511,041 $1,511,041 Life with cash refund: Lump-sum payment of original investment less income payments made to date.
Am I crazy for even considering this an option? I don't understand how this is even feasible for the banks? I mean, for the last option, they basically promise to give all the initial investment back? Granted, it loses value due to inflation, but it also seems like the institution has a good chance of not making $$ if we enter a turbulent market.