The biggest financial fear retirees faceis running out of money. Based on lifeexpectancy tables, the average retiree canexpect another 25 to 35 years of livingexpenses in their lifetime. An annuity,where you give an insurance company achunk of cash and get a monthly check inreturn, can guarantee income for life, butexpenses are high and there will be nothingleft for your heirs. On the other hand,if you keep all your assets in mutual funds,the chance that you may run out of cashdown the road increases significantly. Thesolution may be a hybrid approach: Annuitizeenough of your portfolio (25% to50%) to give you income for essential livingcosts, leaving the rest in mutual fundsfor discretionary and emergency expenses.