How Annuities Can Prevent Your Parents From Becoming Your Roommate

Hi there, I’m Stan The Annuity Man, America’s Annuity Agent, licensed in all 50 states, based in Las Vegas, Nevada.

I know what you’re thinking, Las Vegas, isn’t that where people go to risk their money? Isn’t that a conundrum? Yeah, it is. But we only deal in contractual guarantees. So yes, we love Las Vegas, and kudos to Las Vegas.

Today’s topic is a good one, and it probably caught your attention. Here’s how annuities can prevent your parents from becoming your roommate.

We’re all getting to that stage of life. My wife and I both still have our moms; they’re in their eighties and starting to slip a little. We all see that happen. Maybe you’re in the same situation, caring for aging parents, watching them slow down, and wondering what comes next.

It’s funny how life comes full circle. You start out as their kid, and one day, you’re helping them manage their day-to-day lives. We all want to make sure our parents are living comfortably, that their lifestyle is good, and that their bills are covered.

But let’s be honest, unless you’re from the deep South, where I’m from in North Carolina, it’s not ideal for your parents to move back in with you. My father passed away years ago, and my mom’s still alive. I love my mom, but I don’t want her living with me. You know what I’m saying? That would upset the apple cart, as some people would say.

How Annuities Help

So how do annuities prevent that?

Annuities come in all forms, shapes, and types, and they solve four primary things. I use the acronym PILL: Principal Protection, Income for Life, Legacy, and Long-Term Care.

For seniors, and I’m not far behind them, it usually comes down to two things: long-term care and lifetime income.

They need income they can count on. They need stability. They need to live their lives without worrying about running out of money. If they’re going into assisted living, long-term care, or just trying to stay independent, annuities can help cover that gap.

When Cognitive Decline Enters the Picture

Now, let’s talk about a tough subject.

We recently had a case where a mother was developing dementia. She was forgetting things, missing payments, and losing track of her finances. In situations like that, it’s critical to know what can and can’t be done.

If someone is not cognitively capable, you can’t, and shouldn’t, sell them anything. Period. That’s where Durable Power of Attorney comes in. If you’re the child of a parent in that position, you need to go to an estate planning attorney and set up a Durable Power of Attorney. That allows you to make financial decisions on their behalf if they become unable to do so themselves.

In my own family, my sister is my mom's Durable Power of Attorney. She’s smart and capable, and she makes the financial decisions for our mother. I help advise her, but she handles the execution.

How We Set Up My Mom

Here’s how we structured my mom’s retirement income.

She’s a retired teacher from the North Carolina school system, so she receives a pension. That’s one guaranteed income stream. She also receives Social Security, which continued after my father passed away.

We filled in the remaining gap of her income floor, that’s the amount of income she needs each month to cover all her bills, by adding a lifetime income annuity. We structured it so that if my mom passes away early in the contract, 100 percent of the unused money goes to my sister and me. The “evil” annuity company doesn’t keep a penny. But as long as my mom is alive and breathing, that income keeps coming in.

That’s a peace of mind.

Lessons From Experience

When my father passed away, things changed quickly.

My parents were from the deep South, where the husband handled everything. My dad paid the bills, drove the car, and managed the finances. My mom had never done any of that.

After he passed, my sister and I had to sit down with her and say, “Okay, Mom, show us what bills are coming in.”

We listed everything: house payment, utilities, groceries, and insurance. That’s what we call the income floor. Then we compared that to her pension and Social Security to see if it covered the expenses. When it didn’t, we filled the gap by buying an Immediate Annuity. That created a guaranteed income every month, so she wouldn’t have to worry about anything.

We put all her bills on autopay so she could live her life, play cards, go to the movies, and visit friends. That’s what lifetime income is supposed to do: give you time and freedom.

Planning Ahead for Care

We also planned for the next stage.

If she ever needs assisted living or long-term care, we already have an annuity in place to help cover that cost. That’s how you plan for independence. That’s how you make sure your mom doesn’t end up becoming your roommate.

And that’s not a selfish decision; it’s a loving one. Most parents don’t want to live with their adult children anyway. And if you’re honest, the feeling is probably mutual.

Steps You Can Take

First, talk to an estate planning attorney and get that Durable Power of Attorney in place.

Next, visit The Annuity Man and speak with one of my qualified team members. Every member of our team is licensed, salaried, and experienced. No commissions. No pressure.

We can help you find the right annuity solution for your parents, or even for yourself.

You can also request what’s called a reverse-engineer quote, which means you tell us, “We need 750 dollars per month for the rest of Mom’s life,” and we’ll run quotes to see how much principal it takes to guarantee that amount.

That’s how you create predictable income and protect your family’s independence.

The Bottom Line

The process starts with a conversation with your parents, your siblings, and your estate planning attorney. Then it continues with us.

We’ll help you structure the income, fill in the gaps, and make sure everyone can live comfortably and independently, without turning your guest room into a retirement suite.

My name is Stan The Annuity Man. See you next time.