Given your situation as a 65-year-old retiree in good health with $2,500 per month in Social Security income, Medicare A and B coverage, supplemental Medicare insurance, dental insurance, and $200,000 in cash savings, here is a comprehensive approach to managing your money to ensure it lasts for the rest of your life:

• Your Social Security income of $2,500 per month ($30,000 per year) provides a steady, inflation-adjusted base income that you can count on for life.
• Medicare A and B, along with supplemental insurance, will cover many healthcare costs, but gaps remain, especially for long-term care, dental, vision, hearing, and out-of-pocket expenses such as deductibles and copays.
• It's important to budget for these potential gaps and unexpected medical expenses.

• A widely recommended guideline is the 4% safe withdrawal rate, which suggests withdrawing about 4% of your savings in the first year of retirement and adjusting for inflation thereafter.
• For $200,000, this means withdrawing about $8,000 in the first year.
• Combined with your Social Security income, this would give you approximately $38,000 per year ($30,000 + $8,000) to cover living expenses.
• This approach aims to make your savings last for 20-30 years, assuming moderate market returns and inflation.

• Keeping all your savings in cash is not advisable because inflation will erode purchasing power over time.
• Consider a diversified portfolio that includes:
  1. Income-generating investments such as bond funds, dividend-paying stocks, or income funds to provide regular income distributions.
  2. Some growth investments (e.g., equity funds) to help your portfolio keep pace with inflation and grow over time, balanced with lower-risk assets to reduce volatility.
• Alternatively, you might invest part of your savings in a fixed indexed annuity with an income rider, which can provide guaranteed monthly income to cover Medicare premiums and other healthcare costs without risking principal.

• Annuities can complement Medicare by providing a steady income stream to cover premiums, deductibles, and out-of-pocket medical expenses.
• Hybrid annuities with long-term care riders can help cover costs Medicare does not, such as assisted living or nursing home care.
• Annuities can also protect your savings from market downturns and provide spousal continuity and death benefits if desired.

• Keep some portion of your savings in cash or a cash-equivalent account to cover immediate expenses and avoid having to sell investments during market downturns.
• This cash reserve can help smooth out income fluctuations and provide peace of mind.

• Regularly review your spending, healthcare needs, and investment performance.
• Adjust withdrawals and investment allocations as needed to ensure your portfolio remains sustainable.
• Consider consulting a financial advisor to tailor a retirement income plan specific to your needs and risk tolerance.

• Rely on your $2,500/month Social Security as a stable base income.
• Withdraw about 4% ($8,000) annually from your $200,000 savings initially, adjusting for inflation.
• Invest your savings in a diversified mix of income-generating and growth assets to balance income and inflation protection.
• Consider annuities to secure guaranteed income for healthcare costs and protect against market risk.
• Maintain a cash reserve for short-term needs.
• Regularly review and adjust your plan to ensure longevity of your funds.

This strategy aims to provide you with a sustainable income stream, cover healthcare-related expenses beyond Medicare, and preserve your savings to last throughout your retirement years. Consulting a financial advisor can help customize this approach based on your specific goals and risk tolerance.