No. of Recommendations: 1
1. What are your expenses after SS? That number is important.

2. If one of you died would you be able to reduce your expenses or are they likely to remain the same?

3. While you're calculating your expenses after SS and a worst case expense option if one of you died, I'd do the following:

a) Check Vanguard and determine the cost of an immediate fixed annuity on each of you for the amount of #1. You might not want to do that but it would be nice to know the cost of insuring all your risk.

b) After you figure #2, I'd check on the cost of just enough life insurance to reduce that risk. Again, you might not have to do that but it would be good to know the number.

4. I'd guess the chances are good that you might not have to take either the annuity or the life insurance if the expenses you need to fund are small based upon your $1 million dollar investment sum. If that is true then you could buy a ladder of specific 10 year treasuries and beyond to take care of any expenses (very conservative).

As an alternative you might be able to fund a 30% stock 70% bond portfolio that would provide you with nice income.

5. If I wanted to "play" with individual stocks at your age and you are concerned with that I'd go wither go with index funds OR practice with the TMF CAPS to test your ability to choose.

Congratulations on being a millionaire. It doesn't seem as much as it once was does it?

Hockeypop
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