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Author: madcitylen Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: ? re: retirement portfolio Date: 8/5/1997 10:03 PM
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I would like an opinion re: a plan I have been considering for my portfolio.
I am 67 retired with a monthly annuity from my past employment and social
security. I have X amount of money in an IRA to invest (from a Keogh and 403b).
For discussion purposes let's assume that is $1000. Using that figure, I want to
withdraw $92 a year to supplement my annuity and social security and hopefully to at least maintain my principle.

My tentative plan is as follows: Invest $600 in equities - for my comfort re:
diversity I would like to put $200 in foolish four, $200 in an S&P500 index
and $200 in a growth mutual fund (Montag and Caldwell) which has done well
compared to the S&P 500 in both good and bad years. The remaining $400 would go
in a money market fund; with the plan to take my $92 a year (in 12 installments)
from the money market fund. At the beginning of each new year the money taken
from the money market would be replaced from the earnings in the 3 equfity
investments. If the market is down and those investments do not make money,
the money market fund would not be replenished and I would continue drawing from
it. The $400 in the money market fund could be a cushion for five years.

My questions:
1) What do you think of the overall plan?
2) Is it wise rather than foolish to have $400 of the $600 in mutual funds?
3) Is it wise or foolish to even consider the Montag and Caldwell fund?
4) Should the $400 currently planned for the money market be better placed,
like a bond fund? If so, which one or ones?

Thanks
madcitylen
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