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Friends are 65 and 66 and about to retire. They've paid almost no attention to their 401ks over the years and just got an inheritance and have sheepishly asked me for advice. They're a bit vague on amounts, I think a couple hundred thou apiece in 401ks (maybe $4-500,000 total) and a few hundred thou cash inheritance plus savings. Very small Roth accounts as they didn't know of them till a few years ago. Maybe $20k apiece. They're frightened by tales of nefarious investment advisors and don't want to go that route, and also want to do as little management themselves as possible.

I'm thinking roll over each 401k into an IRA and invest in Vanguard Wellesley and put most of the (taxable) cash into Vanguard Wellington. Maybe do something a little more out there with the Roths...the VG REIT fund? The rest of the cash into a 5-year CD ladder. The only work they'd have to do is roll over the expiring CD rung, and take all the interest & dividends they need (reinvest the rest in the fund in that account).

One wrinkle is that their 401ks are at Fidelity, and they feel more comfortable rolling over into IRAs there. Are there funds similar to Wellesly and Wellington at Fidelity? They do want/expect some income from investments to live on. No pensions but above-average SS benefits, about $3k/month put together. They'd like another $2k/month in income.

Does anyone have better ideas for these folks? Remember they want to do as little as possible and don't want to worry.
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