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

MarketWatch

by Quentin Fottrell

February 14, 2026

AI-Generated Deep Dive Summary

A 73-year-old husband is considering selling his $300,000 rental property, which he recently remodeled for $40,000, to purchase an annuity. The rental generates $1,600 in monthly income, the same amount he expects from the annuity. By selling the property, he plans to invest $200,000 into a life annuity that would also provide lifetime support for his 70-year-old wife if he were to pass away. The decision revolves around whether the steady, guaranteed income from the annuity outweighs the benefits of keeping the rental property. While selling the house would eliminate the responsibilities of property management and provide immediate liquidity, it would also mean losing the ongoing rental income that currently supports his lifestyle. The husband believes the annuity offers financial security, particularly as he ages. However, this choice raises important questions about flexibility and long-term planning. Annuities can provide stability but may limit opportunities for future investments or unexpected expenses. Financial experts suggest evaluating factors like inflation, market risks, and the potential need for additional income sources in retirement. This dilemma highlights the complexities retirees face when balancing immediate financial needs with long-term security. This situation is a key consideration for anyone nearing retirement or managing their finances in later life. The trade-offs between property ownership, rental income, and annuities are relevant to many individuals seeking to secure their financial future while maintaining stability. Understanding these choices can help others make informed decisions about their own financial planning.

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Originally published on MarketWatch on 2/14/2026