GZ, for what it's worth, my opinion is that the suggestion to "bank" about half your nest-egg, and then "cruise" for as long as the other half lasts is a wise strategy.
For investing your "nest-egg," I suggest you NOT bet against the U.S. dollar. It has taken a pounding, but has probably "bottomed" and is poised for a long-term rise (w/ ups and downs, but long-term "up").
After 9/11 the Fed lowered rates too far and for too long to boost the economy. So money
was too cheap
and was made available too easily to too many unqualified borrowers. Hence, the real estate bubble and the credit crisis. They chose to err on the side of keeping the economy "alive" and keeping people in jobs. The worst of these crisises are "probably" behind us. As the banks work through the bad debts and the housing inventories are worked through, the economy will gradually improve. I think we're 4 to 8 months from the beginning of another multi year growth cycle in the U.S.
chose a strategy of focusing more on fighting inflation than on protecting growth and jobs. Hence they kept interst rates higher, and the Euro soared verses the dollar. Generally speaking, their economies have actually suffered more than the U.S. and are now reaching the point that they will have to lower rates to avoid more pain.
Most commodities (oil,steel,corn, etc.) around the world are priced and traded in U.S. dollars. As the dollar weakened, producers raised prices to offset. Also, China
et.al had increased demand, further driving up commodity prices.
In my opinion, almost all of the circumstances that led to the dollar drop and commodity increase are in the process of reversing; and if you add to that the probability that the U.S. is soon going to get very serious about drilling for more oil
and aggressively pursuing other energy options, then I think the short and medium term prospects for the U.S. dollar and economy are reasonably promising.
Long term there are the social security
and medicare/medicaid issues, but historically the U.S. has a track record
of eventually addressing their challenges and will address these as well. Dealing w/ them will definitely be a "damper" on the economy but probably not a "killer."
I suggest you consider finding a local "broker" and putting about 25% of your nest egg in an 18 month investment grade bond (I saw them this morning yielding about 7%). I'd put another 25% in a 36 month investment grade bond (should be able to get about 7.75%). I'd put the rest in a one year CD (should be able to get a "brokered" CD paying about 4.2%). I'd leave directions to renew that CD for another year a year from now at the best one year rate availble (I expect rates to be about 3/4% to 1% higher a year from now). This strategy should enable you to at least match inflation, and have no expenses and no "worries."
For your "cruising kitty", you may want to keep about 25% in a money
market account, then "ladder" the rest (25% in 3 month CD, 25% in 6 month CD, & 25% in 9 month CD, w/ arrangements for them to pay interest into your money market account and to renew for 6 or 9 month intervals). This strategy gets you maximum safe earnings w/ plenty of liquidity.
I know the above is and over-simplification and that these are just my opinions and I may be very wrong, but I have been in the investments business for 30 years and have experienced and observed a lot of ups and downs.
The one "qualifier" or "wrench-in-the-gears" problem that could really mess things up is the "Iran situation." If Israel
or "anyone" decides to try to "take out" Iran's nuclear bomb making capability, we could see oil
embargoes, and who-knows-what. The best place to have your money if/when that happens is gold. BUT, there have been huge international geopolitical problems just about every decade for past hundred + years, and so far the world has found ways to survive and often prosper.