[jrdavid68]

Long story short, Dad is now in residential care at a nursing home with no long term care coverage.

Liquid cash (checking and savings) will run out this summer.

Current income consists of an annuity and social security - the total of which doesn't even cover his Med. Ins premium and prescription drugs. The new Medicare drug coverage goes in to effect for Dad on 2/1 so hopefully that will actually save him some money each month.

Three sources of money moving forward:
Other Annuites - total value would carry him for about 1 1/2 yrs
IRA (CD's) - value would carry him about 2 1/2 yrs
Normal CDs - no significant cds maturing until mid 2007

I guess my question is whether it would be better to pull from the IRA (he's 76) or annuities and take whatever the tax hit might be now, or leave that money where it is and cash in some CDs early and lose some interest?

No matter how we slice this, if he stays where he is, we are looking at maybe 6 or 7 years and he will be out of money and the state will need to take over.

Suggestions from the Pelican Brain Trust are very welcome!

Thanks,