Consider annuities for investing parents’ money for future

posted by Lawrence Shipman

Older people may have a harder time dealing with their finances, and as a result, their children may consider trying to handle their parents' money.

According to a recent report from Forbes.com, there are some things children can do in order to make sure their parents' finances are in good order. If their parents are healthy, one thing they may consider is investing in an annuity.

A fixed annuity can ensure people don't run out of money as they get older because they pay out a fixed sum over the life of the account. Older people would probably want to stick with a fixed annuity over a variable annuity because the variable kind may be subject to the rises and falls of the stock market.

Children should also make sure to look at their parents' insurance policies if they end up taking over managing their finances.

"In addition to Medicare, they may be entitled to supplemental benefits from former employers or have long-term care policies tucked away but never mentioned," the story from Forbes stated.