Jack, in the situation you describe a laddered maturity bond portfolio is one thing you might want to look at. They can be very safe and no fees as in a mutual fund. Fot that you probably would want to use a discount broker.Fools would usually suggest 5 yrs of expenses in that bond portfolio, but you could go up to 50% of your funds--especially if the interest income covers your living expenses. The rest can be in stocks for inflation protection.You probably have these funds in a rollover IRA account. If you are over 59-1/2, you will want to set up a distribution plan. If you are under 59-1/2 you may want to set up a 72(t) distribution plan.Seems like you are on the right track.Fool on!!