My wife and I have equal balances. She's risk adverse, yet 100% Domestic Stock. I was managing mine with another financial group, but rolled to Fidelity as soon as I could. Ugh...I've been out of the market all of last week while they moved my funds

I just retired, 60, but am willing to risk a bit,. My wife needs to first move her passive 401 into an IRA, then sort it out. That 401 is with Nationwide, under FIdelity, but she'll roll it into an IRA with Fideltiy.
The CFP did provide proposals for period and lifetime annuities. It's more the security of income, rather than the need for income that drove our requesting that. Wife moresoe than me. Still, I was open to generate some income now, because we'll have a mortgage for almost 20 years. it's 3% and ~ 13% of our total nestegg. I'm in no rush to pay it off, but need income to pay it.
Wife might retire in 3 years and once we start Social Security, her small pension, my anemic Roth, etc., we'll have plenty of monthly income. Fidelity ran the Monte Carlo model for use and it if we die at 90, we'll leave about 3x our nestegg to our heirs.
Their recomendation, assuming we'd take 20% of our nestegg and purchase an annuiity, is as follows (well discuss annutity at the bottom):
- Dom Stock 49%
- Foriegn Stock 21%
- Bonds - 25%
- Short Term 5%
The idea being that we'll risk a bit more, using the above strategy, because we've secured some guaranteed income with an annuity. The income generated by the annuity would be ~ 25% of our monthly need.
When I saw how much of our nestegg would be spent on an annuity, I balked. My wife, still likes the idea of some (more) guaranteed income. I'm thinking I'll let her make that choice with her funds, but I'm going to press on without it. I'll withdraw monthly income from my 401 for a few years, until she retires, then we'll change strategy.
QUESTIONS:
Am I offbase here?
At the age of 60, and given the above, how close in Fidelity's recommended invvestment allocation?
Please recommend funds to meet whichever allocation you recommend.
Thanks!