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I am retired and saved a little money can I invest it safely for a return?

Social-Security isn't paying me quite enough to live comfortably but ...

I have saved about $28,000, and I have a house that is paid off worth about $125,000.00
What can I do with this money and equity and social security?

Well a regular bank could pay out about 0.5% on the money saved, but that isn't much so let's look at the higher amounts available.

I can invest some money for a year or two in a CD for 1.25% and gain .75 more than from savings. That equals $1.25 per hundred or $11.25 per thousand per year.

Still not enough money?

Another thing is an immediate annuity.
Although women get paid less than men because they are longer lived, they can earn a bit of money from the investment in the annuity.

For every $5,000.00 invested in an immediate annuity a woman at age 75 can get $35.00 a month or $420.00 a year.

Multiply that times 4 for $20,000.00 invested in an immediate annuity and the numbers start to make some sense.

They add up to $140.00 a month or $1,680 a year.

If you look at this equation blankly you can see that you will have to live to become 87 - 88 years old for this investment to pay out the amount that you have invested and yet you would have the money still in the investment.

The equity in your house

Well there is money in the house itself, and a better deal most likely considering that you are already 75.

You can get about a third of the value from the house and use it to live a better lifestyle as compared to what you are doing now with your money.

So say you get a bulk payment of $90,000.00 you can have a relatively better time living on that.

Some banks that offer a reverse mortgage will give you a line of equity valued at a third of your property value. There are three typical offers are:

1. A lump sum right out
2. A monthly payment
3. An equity line available to you at the bank