DEAR BRUCE: My dad was injured on the job a few years ago. His company let him go, citing his disabilities as a reason for his termination. He should be released from his doctor's care next month and is suing the company. Assuming he wins his case, what should he do with the settlement money he receives -- assuming it's anywhere from $500,000 to $2 million? He and my mom are 50, have low expenses and easily live off of her income. His doctors consider him unemployable due to the number of surgeries he's had. They both have Roth IRAs. I believe they are maxing out. He thinks an annuity is the way to go, but you frequently frown upon them as being good for the salesperson's pockets and bad for the client because it ties up the money. -- M.K., via e-mail
DEAR M.K.: Whether your dad will ever be employed again is not a variable here. He shouldn't be trying to make decisions on hypothetical money. I would shy away from annuities. However, if your dad is totally unsophisticated with regard to investing and understands that in most cases the type of annuity he would purchase would lock him away from his principal for a good many years (unless penalties are paid), this may be a way to go. He needs to get quotes from several insurance companies. We may be talking about a single premium income vehicle. His marital status also has to be taken into account. As for his case, I would sit back and see what happens, and if such a settlement is reached, I would deposit the money in what will amount to a low-interest account and then sit down with a competent financial adviser to try to make the best financial judgment. Good luck.
DEAR BRUCE: How can I get a credit card? I don't have bad credit, just no credit history. I am an 82-year-old retired teacher. I use cash to pay for everything. My home and car are paid off. Now I find that I need a credit card for such things as renting a car, hotel reservations, etc. I have applied for several different cards, and they all turned me down. At my bank, where I have a $40,000 in my checking account, they also turned me down -- the same for Discover, American Express etc. All for the same thing reason, no credit history. -- A.P., via e-mail