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Subject:  Re: Asset Allocation for Retirement Date:  1/22/2003  3:27 PM
Author:  JLC Number:  35600 of 88775

Here's my take, some from personal experience and the rest from reading.

Manage your IRAs as individual portfolios and not really trying to compliment each other. My wife and I tried to do that, run certain investments in my IRA and others in hers. Bottom line, didn't get things diversified enough within the individual IRAs although together it made for a diversified portfolio. As an example, 10 stocks together but 5 in each IRA. One craters it can make a big hole. If I had 10 stocks in the IRA, the one wouldn't have hurt as much.

I would worry about individual stocks until you had $50,000 in an account. Until then and S&P 500 Index fund would suffice. I personally don't do bonds nor bond funds. You can loose your principle just like in stocks or equity funds. To get a fixed rate of return I simply buy CDs. Rates might currently be low but I know what I'll have when I'll get it.


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