<prompt> Human: Hi all,My parents are nearing retirement. They have managed to save about 800k in their retirement savings and their house is worth around 370k. My father recently became disabled and is unable to find new clients. They have started talking about tapping into the retirement money, but they are acting a bit hysterically, and I dont think they are that bad off. The problem is that Im not sure how to convince them that they can gain a livable amount of retirement income. What Im thinking is have my father apply for disability. If accepted he gains roughly 30k per year. In terms of social security he can gain about 1600 per month. Upon retirement what kind of income can they gather from the retirement savings plus house money if they sell it? Put it in bonds and collect the interest every year? Or put into dividend stocks to grab the dividend? Is this a sound plan? What else can be done?  <response>: Applying for disability is a good idea. The worst that can happen is that the government says no.In terms of their 800k in savings, consider this:At a 4 dividend, that 800k would pay 32,000 a year. And thats not factoring in the appreciation of the stocksbondsREITSetc.Before you do anything however, you need to ask one simple question:How much money per year do my parents need in retirement?How much do they spend? 20k? 30k? 80k?Until you know that, none of these other numbers mean anything. Find out the number. Then and only then can you figure out how much is enough, and how much is too little. Based on the information you find, your parents could be fine where they are, or they might have to make sacrifices. 