My husband, 73, wants to sell our $300K rental and buy an annuity. Is that wise?

Core Insights - The husband has remodeled a rental house at a cost of $40,000 and is considering selling it for $300,000 or continuing to rent it for $1,600 per month [2][3] - The plan involves investing $200,000 from the sale into an annuity that would provide $1,600 monthly, similar to rental income, and would also offer benefits in case of widowhood [2] Financial Analysis - If the $300,000 were invested in the S&P 500 with a 7% annual return, it would grow to $374,000 after 20 years, even with monthly withdrawals of $1,600 [4] - Selling the house and netting $200,000 after capital-gains tax, if invested in the S&P 500, could yield significant returns, potentially reaching $1.3 million after 20 years with a 10% annual return [7] Risks and Considerations - The annuity plan provides guaranteed income but ties up funds, posing liquidity risks, especially for potential long-term care costs that could reach $10,000 per month [5] - Maintaining the rental property allows for the possibility of selling at a higher price later, but net income from rent may be lower after accounting for expenses [6] - A $1,600 monthly withdrawal from $200,000 represents a nearly 10% annual withdrawal rate, which is above the generally considered sustainable rate for retirees [8]