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Subject:  Re: Impending Retirement Date:  7/27/1999  6:52 PM
Author:  rjm1 Number:  5 of 178

Yes, he hurt me several times, but that was before I started reading the fool. Now I know that when
I cash in my 403(b) and my TSA I will be doing the investing myself. What I am interested in is,
generally speaking, where? I have an IRA with the Wiseman which is fairly heavy in bonds. I will
have Soc Sec and another retirement also. Should I be in growth? Should I be heavier in bonds?
Should I do the Foolish Four (I believe that is my choice at this time). How far should I go in any of
these? I will have about $125K to invest and need some comments from others. Any comments from
anyone would be appreciated.

Probably lighten up on the bonds.

Add up your pension and social security. Divide by 4% and consider this part of your bond allocation for all of your investments.

Say pension 20,000 and SS 10,000 for a total of 30,000.
Dividing by .04 gives you the equlivant of 750,000 in bonds. The .04 represents a safe withdrawl rate for investments. 4% of 750,000 is a 30,000 income. Put aside an emergency fund and the rest of your money maybe able to be allocated to stock.

The point is that I think that a secure pension can replace a good part of your bond allocation in an investment portfoilo.

Since retirement can last 20, 30 or more years I think equity investments are very important.

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