You are a 65-year-old retired individual in good health, receiving:

• $2,500/month in Social Security Income
• Medicare A & B
• Medicare Supplemental Insurance
• Dental Insurance

You also have $200,000 in cash. Here's how to manage it to support a comfortable and secure retirement.

Assume total monthly expenses: $3,200/month

Shortfall: $3,200 - $2,500 (Social Security) = $700/month or $8,400/year

Goals for the $200,000:

• Cover the gap between Social Security and actual expenses
• Pay for unexpected medical or emergency costs
• Grow modestly to offset inflation

Use a 3%–4% annual withdrawal strategy to stretch funds.

• 3% of $200,000 = $6,000/year (~$500/month)
• 4% of $200,000 = $8,000/year (~$667/month)

This closes your budget gap safely.

• Amount: $20,000–$30,000
• Where: High-yield savings account or money market
• Purpose: Monthly shortfall and emergency access

• Amount: $70,000–$90,000
• Where: Short-term bond funds, CDs, TIPS
• Purpose: Stable income and inflation protection

• Amount: $80,000–$100,000
• Where: Conservative investment portfolio:
  • 40–60% diversified stock index funds (e.g., S&P 500)
  • 40–60% bond funds or dividend-paying stocks
• Consider: Using a robo-advisor for low-cost management

• High-fee advisors (use fee-only fiduciaries)
• Keeping all funds in cash (inflation risk)
• High-risk or “too-good-to-be-true” investments

• Automatic monthly transfers from investments
• Creating a simple estate plan:
  • Will
  • Healthcare directive
  • Power of attorney
• Long-term care planning

Let me know if you'd like help with investment fund suggestions or a simple budget worksheet.