<<In answer to tony44, we have already retired and will need the income immediately. Right now we have it all in blue chip growth funds but my wife, and to a lesser extent I, are getting antsy. With the market cooling and interest rates on the rise and the drought etc. we would sleep a lot better if we had a guaranteed $60K income and only had to worry about actively investing the rest. Bond funds seem almost as volatile as bluechip stock funds.>>

At a time like this, it's easy to become "near sighted" (short term thinker). Your biggest fear as a retiree is inflation. While low now, if it returns to historic levels, it could easily eat away your guaranteed income in a few years. And depending on your current age and family history, you might easily live another 30+ years. Search back in the Foolish Four daily articles and message board under "maximum withdrawl" or "retirement withdrawl" and it'll give you a few ideas and comfort about "living" off a stock portfolio.

JLC