Rayvt: If you have enough money why do it

Well, you have an excellent point but I am always compelled to try and understand my alternatives.

Additionally, I am married to a very intelligent capable wife who is focused on everything else in the world except finance. That plus we have had more than half of our friends develop memory problems in their last years. Putting a portion of investments on auto would be to her advantage.

FireCalc.com it turns out has the capability of allocating portions of your investment capital into annuities.
Makes perfect sense as most retirement incomes are in actuality annuities.

Assuming an 85 year old couple had 1 million dollars and from an actuary spreadsheet:
The probability of one still alive.
@ 5 yrs 80%
@10 yrs 36%
@15yrs 8%
Using FireCalc:

Assets		Stks	Bnds	Annuity	Spnd		10YrOK%	15YrOK%	AvgEndValue
1,000,000.00	60	40	0	55,000		100	100	
1,000,000.00	60	40	0	65,000		100%	86%		656,132
667,000.00	60	40	333,000	65,000		100%	92%		701,000
500,000.00			500,000	65,000		100%	95%		710,421
500,000.00	70	30	500,000	65,000		100%	95%		769,060

From this it actually looks like 50% of your investments in an annuity using historical simulation gives the best overall results. I personally couldn’t give up that much control, but the initial look is promising enough that I might consider a smaller percentage into annuities.

Retirement Investing FAQ

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