Investment advice for old retired couple

[Ethel]

I'm asking this for my parents who are in their late 60s and retired.

They recently downsized and have 250k at hand and asked me for advice what to do with it. They have decent pensions so they don't need this money to generate income. They have an emergency fund and no debt. There's nothing they want to buy with it. They also don't want to blow it on a 14-month cruise (I asked). This is supposed to be their cushion for the future.

I'm thinking of telling them to put aside 50k and then divide the rest 50-50 between an index fund and bonds.

Is this too simplistic a plan? Is there something else they should consider doing (beyond going to a fiduciary for professional advice)?

[BicycleB]

It sounds like a practical plan to me.

[Radagast]

That sounds like a good choice, or perhaps a three fund portfolio equally split between US stocks, international stocks, and bonds. Also look at Vanguard's balanced funds, for example LifeStrategy Growth (80/20), LifeStrategy Moderate Growth (60/40), or tax-managed balanced (60/40) if needed. Some people might say to put it all in stocks if they truly never plan to spend it, because those have the lowest tax consequences and highest "expected" growth. Too many options, really. Good choice not going on a cruise!